St. James's Place (STJ) H2 2025 (Q&A) earnings summary

Executive summary

• Achieved strong operational and financial results in 2025, with gross inflows up 19% to £21.9bn and FUM rising 16% to £220.0bn.

• Underlying post-tax cash result increased 3% to £462.3m; IFRS profit after tax up 33% to £531.4m.

• Successfully implemented a simplified charging structure and launched Polaris Multi-Index, reaching over £1bn FUM within two months.

• Advanced cost and efficiency programs, including a 14% reduction in Group headcount and targeting £100m annual cost savings by 2027.

• Released £109.5m from historic ongoing service evidence provisions, progressing toward program completion by 2026.

Financial highlights

• Underlying cash result of £462m, up 3% year-on-year and 4% ahead of consensus.

• FUM retention rate improved to 94.9% from 94.5% in 2024.

• Net investment return was 12.4% of opening FUM, up from 10.5% in 2024.

• EEV NAV per share rose 22% to £19.84.

• Returning £313m to shareholders for 2025 via dividends and buybacks.

Outlook and guidance

• Payout ratio to increase to 70% of underlying cash result from 2026, with at least 40% as ordinary dividends and the remainder as buybacks.

• 2026 guidance: net income from FUM margin expected at 43–45bps (lower end in 2026); controllable expenses to grow 5%.

• Margin from new business expected to be approximately zero in 2026; cost and efficiency programme net benefits to emerge from 2027.

• Focus for 2026 includes completing transformation programs, expanding AI-enabled technology for advisors, and enhancing high net worth and cash propositions.

• Confident in doubling 2023 underlying cash by 2030, with a strong start but mindful of market variability.