St. James's Place (STJ) H1 2025 earnings summary

Executive summary

• Achieved strong operating and financial performance in H1 2025, with gross inflows up 23% year-over-year to £10.5bn and net inflows doubling to £3.8bn, driving record funds under management (FUM) of £198.5bn as of June 30, 2025.

• Underlying post-tax cash result rose 17% to £240.4m, and IFRS profit after tax increased 69% to £279.5m compared to H1 2024.

• High client retention at 95.3% and positive investment returns contributed to growth, with over one million clients supported by nearly 5,000 advisers.

• Strategic initiatives advanced, including a new charging structure launching August 2025, a cost and efficiency programme targeting £100m in annual savings by 2027, and the development of new multi-asset funds.

• Released £84.5m from the Ongoing Service Evidence provision following revised FCA guidance, with £63.4m after tax to be returned to shareholders via buy-back.

Financial highlights

• Net income from FUM grew 13% year-over-year to £366.1m, driven by higher average mature FUM.

• Margin from new business rose 40% to £75.4m, driven by higher new business volumes; margin expected to be approximately zero post-implementation.

• Controllable expenses increased 7% to £155m, with full-year growth guidance at 5%.

• Cash result, including one-off items, was £299.2m, up 48% year-over-year, aided by a £63.4m provision release.

• EEV NAV per share rose 7% to £17.43; solvency ratio at 197%.

Outlook and guidance

• New charging structure to be implemented by end of August 2025, expected to reduce margin on mature fund to 43–45bps.

• Anticipated dip in profitability for H2 2025 and 2026 post-implementation, with cash result expected to accelerate from 2027.

• Ambition to double underlying cash result from 2023 to 2030, supported by compounding FUM and cost discipline.

• Cost and efficiency programme on track for completion by 2027, targeting £100m annual savings.

• Annual shareholder returns for 2025 and 2026 set at 50% of full-year underlying cash result, split between dividends and buy-backs.