Rathbones Group (RAT) Trading Update summary

Integration and operational progress

• Successfully migrated 90% of Investec Wealth & Investment (IW&I) client accounts to the Rathbones platform, with full migration on track for Q2 2025 completion.

• Synergy delivery increased to £30.4 million per annum, with most remaining cost synergies expected in H2 2025.

• Leadership transition planned, with Jonathan Sorrell joining as CEO in July 2025.

Financial performance and market impact

• Funds under management and administration (FUMA) declined 4.7% to £104.1 billion, reflecting market volatility and migration focus.

• Net outflows of £784 million in Q1 2025, with gross inflows of £2.7 billion and outflows of £3.5 billion.

• Total operating income was resilient at £220.1 million, down 1.6% year-on-year, with fee-based income impacted by market weakness at billing dates.

• Net interest income grew modestly, but full impact from IW&I client deposits will be recognized from Q2.

Segment and product trends

• Wealth Management segment FUMA at £88.7 billion; Asset Management at £15.4 billion.

• Net inflows in Rathbones Investment Management discretionary & managed propositions were £62 million, annualized growth rate of 0.4%.

• IW&I UK saw net outflows of £425 million, consistent with Q4 2024, but with reduced gross outflows.

• Asset Management single strategy funds experienced net outflows of £265 million, despite strong fund performance.