Slide 1: 2024 Interim Results
2024 INTERIM RESULTS July 2024 Rathbones Group Plc
Slide 2: Your Team Today
Rathbones Group Plc | Interim results 2024 2 YOUR TEAM TODAY PAUL STOCKTON IAIN HOOLEY Group Chief Executive Officer Group Chief Financial Officer
Slide 3: Business Update: Focused on Delivery
Rathbones Group Plc | Interim results 2024 3 BUSINESS UPDATE: FOCUSED ON DELIVERY Paul Stockton Group Chief Executive
Slide 4: H1 2024 Key Messages
Rathbones Group Plc | Interim results 2024 4 H1 2024 KEY MESSAGES Improving flows Underlying margin IW&I integration InvestCloud launched progression on track — Total FUMA +3.4% — Underlying — Client consent well — First stage in H1 to £108.9bn operating profit of underway InvestCloud (FY23: £105.3b
Slide 5: An Increasing Need to Save, Plan for and Grow Long-Term Wealth
Rathbones Group Plc | Interim results 2024 5 AN INCREASING NEED TO SAVE, PLAN FOR AND GROW LONG-TERM WEALTH Why Rathbones? MARKETING & INFRASTRUCTURE AND BRAND AND SCALE PROPOSITIONS ROBUST FINANCIALS DISTRIBUTION PEOPLE — Well-established, — Investment and advice — 693 investment/asset — Strong dig
Slide 6: IW&I Integration Progressing Well
Rathbones Group Plc | Interim results 2024 6 IW&I INTEGRATION PROGRESSING WELL Propositions Investment process Colleagues Office consolidation Synergies — Increasing alignment — Common philosophy — Focus on — Combined six offices — Run-rate year one engagement synergies of £20 — Streamlining MPS — B
Slide 7: IW&I Client Migration Remains on Track
Rathbones Group Plc | Interim results 2024 7 IW&I CLIENT MIGRATION REMAINS ON TRACK 2024 End 2024 Q1 2025 2025+ Consent process well underway — c.58,000 accounts to be migrated Phase 2: Parallel run Phase 4: Optimise — c.25,000 clients contacted with good acceptance rates — Combined Phase 3: Integra
Slide 8: Saunderson House Migration Substantially Complete
Rathbones Group Plc | Interim results 2024 8 SAUNDERSON HOUSE MIGRATION SUBSTANTIALLY COMPLETE Migration substantially complete Saunderson House Migrated Asset Revenue (£m) — £4.3bn of SHL connected FUMA at 30 June 2024 114bps — Revenue synergies largely crystalised — Annualised revenue based on FUM
Slide 9: Improving Our Digital Capability
Rathbones Group Plc | Interim results 2024 9 IMPROVING OUR DIGITAL CAPABILITY WHAT HAS BEEN DELIVERED IMMEDIATE BENEFITS FUTURE BENEFITS — Core InvestCloud functionality launched — InvestCloud allows IMs a single view of — Further automation of key business client processes — Continued to develop Ch
Slide 10: Financial Update
Rathbones Group Plc | Interim results 2024 10 FINANCIAL UPDATE Iain Hooley Group Chief Financial Officer
Slide 11: Operating Margin Improves as Income and Profit Grow
Rathbones Group Plc | Interim results 2024 11 OPERATING MARGIN IMPROVES AS INCOME AND PROFIT GROW FUMA (£bn) Operating income (£m) Underlying PBT (£m) and margin (%) 3.4% 88% 2.2x 108.9 447.4 105.3 25.1% 43.0 181.7 42.2 112.1 21.5% 21.3% 60.5 63.1 65.9 265.7 231.9 238.0 50.0 50.8 HY23 FY23 HY24 HY22
Slide 12: Interim Dividend Growth of 3.4% Maintains Progressive Dividend Policy
Rathbones Group Plc | Interim results 2024 12 INTERIM DIVIDEND GROWTH OF 3.4% MAINTAINS PROGRESSIVE DIVIDEND POLICY Statutory PBT (£m) Underlying basic EPS (p) Dividends (p) 2.5x 21% 3.4% 65.3 80.4 30.0 67.6 66.4 29.0 32.6 26.0 28.0 HY22 HY23 HY24 HY22 HY23 HY24 HY22 HY23 HY24 HY 24 includes IW&I an
Slide 13: Significant Improvement in Net FUMA Flows in Second Quarter
Rathbones Group Plc | Interim results 2024 13 SIGNIFICANT IMPROVEMENT IN NET FUMA FLOWS IN SECOND QUARTER FUMA flows by segment (£bn) Group Quarterly net FUMA flows (£m) Q4 23 Q1 24 Q2 24 Wealth Asset Group Rathbones £bn management management eliminations Group (30) (220) Opening FUMA 96.1 13.8 (4.6
Slide 14: Wealth Management Segment Flows Improving in Second Quarter
Rathbones Group Plc | Interim results 2024 14 WEALTH MANAGEMENT SEGMENT FLOWS IMPROVING IN SECOND QUARTER Wealth Management FUMA flows for six months to 30 June 2024 Quarterly net FUMA flows (£m) Opening Net Service Market Closing RIM Discretionary & Investec Wealth & £bn FUMA Flows Transfers Moveme
Slide 15: Rathbones Standalone Income Up 11.5%
Rathbones Group Plc | Interim results 2024 15 RATHBONES STANDALONE INCOME UP 11.5% Income (£m) H123 H124 % — Fee and funds income reflects higher average FUMA at billing Rathbones IW&I Group Rathbones dates and continued migration of Saunderson House assets Fee income 138.8 148.3 137.2 285.5 6.8% —
Slide 16: Income Margins
Rathbones Group Plc | Interim results 2024 16 INCOME MARGINS 30 June 2024 Income Margins (bps per annum) — Revenue margins remain strong across all income streams 58.8bps — FUMA driven margins for Wealth Management and Asset Management fee income are based on gross FUMA of the relevant 285.5 segment
Slide 17: Underlying Expenses
Rathbones Group Plc | Interim results 2024 17 UNDERLYING EXPENSES — Fixed and variable staff costs reflect the impact of including IW&I H123 H124 Var headcount Fixed staff 88.2 149.6 61.4 — Fixed costs reflect current year salary inflation of c.3.5% — Other operating costs include £7.1 million (HY 2
Slide 18: Underlying Expenses Benefit from Early Synergy Realisation
Rathbones Group Plc | Interim results 2024 18 UNDERLYING EXPENSES BENEFIT FROM EARLY SYNERGY REALISATION Actual synergy realisation Projected synergy realisation HY24 2026 (£m) P&L Annualised Target Phasing of run rate synergies of at least £60m Staff 2.4 5.5 - Non-Staff 0.9 1.7 - 100% Technology an
Slide 19: Integration Costs Running in Line with Expectations
Rathbones Group Plc | Interim results 2024 19 INTEGRATION COSTS RUNNING IN LINE WITH EXPECTATIONS Profit after tax (£m) H123 H124 Var IW&I integration costs (£m) FY23 H124 Final Underlying operating profit 50.8 112.1 61.3 Costs to achieve [2] 5.9 12.7 98.0 Amortisation (9.5) (22.0) (12.5) Employee i
Slide 20: Robust Capital with Progressive Dividend Policy Maintained
Rathbones Group Plc | Interim results 2024 20 ROBUST CAPITAL WITH PROGRESSIVE DIVIDEND POLICY MAINTAINED Capital surplus (£m) 134 146 — Consistent common equity tier one ratio provides ongoing evidence of robust and resilient capital position 471 488 — Increased capital surplus includes the impact o
Slide 21: Guidance
Rathbones Group Plc | Interim results 2024 21 GUIDANCE DIGITAL Strategic investment complete this year with total costs of c.£45m in line with expectations Expect to deliver full-year mid-twenties underlying profit margin in 2024, progressing to 30+% from UNDERLYING MARGIN Sept 2026 DIVIDEND Progres
Slide 22: Well Positioned for Growth
Rathbones Group Plc | Interim results 2024 22 WELL POSITIONED FOR GROWTH A well-established and Opportunity to strengthen Strong financials, underpinned by a trusted brand where clients feel marketing and distribution capability responsibly managed financial supported by a business with alongside on
Slide 23: Appendix
Rathbones Group Plc | Interim results 2024 23 APPENDIX
Slide 24: Investment Management Client Base
Rathbones Group Plc | Interim results 2024 24 INVESTMENT MANAGEMENT CLIENT BASE Analysis of funds under management¹ Service level by FUM Fund type by FUM 2% Discretionary Private clients 10% 11% ISAs Advisory 8% 34% Charities Execution-only Pensions 16% Trusts Other 88% 10% 21% Size of client relati
Slide 25: Where Our Clients' Assets Are Invested
Rathbones Group Plc | Interim results 2024 25 WHERE OUR CLIENTS’ ASSETS ARE INVESTED¹ 5.5% 4.4% 5.2% 3.7% 3.2% 9.5% 8.3% 9.4% 10.5% 11.9% 43.4% 47.0% 41.8% 44.6% 41.5% 30.6% 24.9% 23.2% 29.4% 28.6% 18.5% 18.3% 12.7% 11.1% 12.8% FY 20 FY 21 FY 22 FY 23 H1 24 Fixed income UK equities Overseas equities
Slide 26: Reconciliation of Proposition & Segmental Disclosures for FUMA & Flows
Rathbones Group Plc | Interim results 2024 26 RECONCILIATION OF PROPOSITION & SEGMENTAL DISCLOSURES FOR FUMA & FLOWS Per proposition disclosure Closing Gross Wealth Net Group Gross Asset £bn FUMA Management Asset Management Eliminations Management Rathbones Investment Management 51.4 51.4 - - - Besp
Slide 27: Analysing the Balance Sheet
Rathbones Group Plc | Interim results 2024 27 ANALYSING THE BALANCE SHEET Audited 31 Audited 31 Unaudited 30 Unaudited 30 December December Assets June 2024 Liabilities June 2024 2023 2023 £m £m £m £m Cash and balances with central banks 1,033.0 1038.3 Deposits by banks 19.4 12.4 Settlement balances
Slide 28: Important Information
Rathbones Group Plc | Interim results 2024 28 IMPORTANT INFORMATION The value of investments and the income from them may go down as well as up and you may not get back your original investment. Past performance should not be seen as an indication of future performance. Changes in rates of exchange