Rathbones Group (RAT) Q3 2024 TU earnings summary

Executive summary

• Integration of Investec Wealth & Investment (IW&I) progressed rapidly, with over 80% of clients approached for account migration and strong response rates.

• Run-rate synergy realization reached £25.5 million, surpassing the first-year post-combination target of £15 million.

• Net flows remained resilient despite elevated outflows due to Saunderson House migration and industry-wide macroeconomic factors.

• Heightened client engagement opportunities anticipated due to potential taxation changes in the upcoming Autumn budget.

Financial highlights

• Funds under management and administration (FUMA) stood at £108.8 billion at 30 September 2024, nearly flat from £108.9 billion at 30 June 2024.

• Gross inflows were £2.8 billion in Q3 2024 (Q2: £3.1 billion), with gross outflows at £3.4 billion (Q2: £3.2 billion).

• Net inflows in Rathbones Investment Management discretionary & managed propositions were £147 million in Q3, up from £135 million in Q2.

• Operating income for the Group was £220.6 million in Q3 2024, down from £223.8 million in Q2, reflecting seasonal and market factors.

• Net operating income for the nine months ended 30 September 2024 was £668.0 million, up 86.4% year-over-year.

Outlook and guidance

• Full year results for 2024 will be announced on 26 February 2025, with a Q4 trading update on 16 January 2025.