Rathbone Brothers Stock Earnings Reports

Rathbones delivered a solid H1 2026 with FUMA at £120.7bn (up 10.7% YoY) and operating income up 8.6% to £487.5m. Underlying PBT rose 14.4% to £123.2m and underlying EPS increased 17.1% to £0.885; the board declared an interim dividend of £0.32 (up 3.2%). The business benefitted from full-year synergy run-rate (£76m of synergies) and continued cost discipline, producing a 25.3% operating margin for the half. Net flows improved materially in Q2 (Wealth Management reported net inflows of £450m in Q2), leaving H1 group net outflows at c. £0.9bn (slightly better than H1 2025). Management reiterated disciplined capital allocation: completed the share buyback (~3.3% of shares) and reported a strong CET1-style capital position (total capital ratio 18.3%, c. £166m surplus over regulatory minimum).

Key risk and program updates: management announced the FCA / Skilled Person Review (expected incremental cost c. £60m) and stressed it is being run alongside the strategy execution. They expect the Skilled Person actions to be completed without impacting the existing capital base and have begun EDD file reviews (target to complete restricted-client reviews by year-end). As a result of the decision to cease charging fees on cash in discretionary portfolios, the Q4 operating margin target was revised from 30.0% to 28.7% (a 1.3ppt headwind to H2). Implementation of Salesforce (end-Q3 go-live) and AI/efficiency measures are expected to reduce technology and operational friction, supporting margin recovery and the ambition to reach the revised Q4 margin target assuming modest FUMA growth, stable inflation and rates.