Rathbones Group Plc · LSE:RAT
Rathbones — H1 2025 Earnings Presentation
31 slides from Rathbones's earnings presentation, July 2025
Slide 1: 2025 Interim Results
2025 INTERIM RESULTS July 2025 Rathbones Group Plc
Slide 2: Welcome: Agenda for today
Rathbones Group Plc | Interim results 2025 2 WELCOME Agenda for today — Financial update and guidance — Integration update and positioning for the next chapter CLIVE BANNISTER PAUL STOCKTON — CEO designate first impressions Chair Group Chief Executive Officer — Q&A — Some reflections IAIN HOOLEY JON
Slide 3: In the last six months we have…
Rathbones Group Plc | Interim results 2025 3 IN THE LAST SIX MONTHS WE HAVE… Completed planned IW&I client and asset migration Appointed new Group CEO and Wealth CEO Refined our capital allocation framework Announced new propositions launching this year
Slide 4: Financial update
Rathbones Group Plc | Interim results 2025 4 FINANCIAL UPDATE
Slide 5: Key metrics impacted by Q1 market volatility with recovery in Q2
Rathbones Group Plc | Interim results 2025 5 KEY METRICS IMPACTED BY Q1 MARKET VOLATILITY WITH RECOVERY IN Q2 FUMA (£bn) Operating income (£m) Underlying PBT (£m) and margin (%) 21.3% 25.1% 24.0% 108.9 109.0 447.4 449.1 112.1 107.7 60.5 238.0 50.7 HY23 HY24 HY25 HY23 HY24 HY25 HY23 HY24 HY25 FUMA in
Slide 6: Interim dividend maintains our progressive policy
Rathbones Group Plc | Interim results 2025 6 INTERIM DIVIDEND MAINTAINS OUR PROGRESSIVE POLICY Statutory PBT (£m) Underlying basic EPS (p) Dividend per share (p) 65.3 62.3 80.4 31.0 75.6 30.0 29.0 66.4 26.0 HY23 HY24 HY25 HY23 HY24 HY25 HY23 HY24 HY25 Statutory PBT impacted by underlying factors. EP
Slide 7: Underlying PBT and margin impacted by cost headwinds
Rathbones Group Plc | Interim results 2025 7 UNDERLYING PBT AND MARGIN IMPACTED BY COST HEADWINDS — The benefit of synergies to HY2025 is £12.0m higher than HY2024 as a result of continuing synergy delivery. Underlying PBT and margin — The higher synergy benefit and lower variable staff costs 1.0% (
Slide 8: Net flows improve in Q2 as wealth management gross outflows reduce
Rathbones Group Plc | Interim results 2025 8 NET FLOWS IMPROVE IN Q2 AS WEALTH MANAGEMENT GROSS OUTFLOWS REDUCE FUMA flows by segment – six months ended 30 June 2025 — Net flows improved markedly in Q2, with net outflows reducing to £0.2bn in Q2 from £0.8bn in Q1. Wealth Asset Group Rathbones £bn Ma
Slide 9: Income remains resilient despite market volatility
Rathbones Group Plc | Interim results 2025 9 INCOME REMAINS RESILIENT DESPITE MARKET VOLATILITY Operating Income – six months ended 30 June 2025 — Wealth Management fee income was impacted by Q1 market £m HY25 HY24 Change Change % volatility. Wealth Mgt 285.0 285.5 — Asset Management fees (calculate
Slide 10: Income margins remain resilient
Rathbones Group Plc | Interim results 2025 10 INCOME MARGINS REMAIN RESILIENT Income Margins[1] Fee & Commission Income Margin Treasury Income (% of FUMA) Margin — FUMA-driven income margins are calculated on the gross 59.0bps (% of Liquidity) value of average FUMA of the relevant segment, prior to
Slide 11: Synergy delivery on track to be c.£60m by calendar year end
Rathbones Group Plc | Interim results 2025 11 SYNERGY DELIVERY ON TRACK TO BE C.£60M BY CALENDAR YEAR END Actual synergy realisation – run rate at 30 June 2025 Synergies Synergy Remaining £m Delivered Target synergies — Synergy delivery of £47.2million is reported on an annualised run rate basis and
Slide 12: Non-underlying costs
Rathbones Group Plc | Interim results 2025 12 NON-UNDERLYING COSTS Non-underlying Costs – six months ended 30 June 2025 £m HY25 HY24 Change Underlying operating profit 107.7 112.1 (4.4) — Amortisation of intangible assets reflect the ongoing run rate following the IW&I combination. Amortisation (22.
Slide 13: Share buyback of £50m announced
Rathbones Group Plc | Interim results 2025 13 SHARE BUYBACK OF £50M ANNOUNCED On-market ordinary share buyback programme of £50m, subject to regulatory approval. Investec will not participate in the share buyback, but Rathbones will ensure that Investec’s voting and economic interests remain at or b
Slide 14: A disciplined and holistic approach to capital allocation
Rathbones Group Plc | Interim results 2025 14 A DISCIPLINED AND HOLISTIC APPROACH TO CAPITAL ALLOCATION CAPITAL ALLOCATION FRAMEWORK Organic growth Inorganic growth and strategic initiatives opportunities Targeted investments to drive long- term business growth with cost Strong Continuing our strong
Slide 15: Guidance
Rathbones Group Plc | Interim results 2025 15 GUIDANCE
Slide 16: H2 2025 guidance
Rathbones Group Plc | Interim results 2025 16 H2 2025 GUIDANCE — The outlook for net flows continues to improve as the factors that have elevated gross outflows recede — We continue to expect income to see some benefit from greater provision of advice in 2025 INCOME — Commission income expected to s
Slide 17: Positioned for the next chapter
Rathbones Group Plc | Interim results 2025 17 POSITIONED FOR THE NEXT CHAPTER
Slide 18: IW&I client migration
Rathbones Group Plc | Interim results 2025 18 IW&I CLIENT MIGRATION IW&I clients have been successfully migrated NEXT… Streamline processes Harness client feedback Improve efficiency to further Use insights gathered from enable client-facing teams to IW&I clients during the deliver high-quality clie
Slide 19: Tapping into the UK wealth management opportunity
Rathbones Group Plc | Interim results 2025 19 TAPPING INTO THE UK WEALTH MANAGEMENT OPPORTUNITY A favourable landscape aligned with long-term structural growth Improving Market Backdrop A Business Ready to Deliver £2.9tn[1] Estimated UK household Volatility has highlighted the value of active Post o
Slide 20: Driving future growth - from integration to acceleration
Rathbones Group Plc | Interim results 2025 20 DRIVING FUTURE GROWTH- FROM INTEGRATION TO ACCELERATION Direct Private Clients IFAs Charities Focusing on the life moments Maximising our discretionary and Delivering scalable, cost-effective and stages that truly matter to RAM capabilities to protect an
Slide 21: H1 integration to H2 optimisation
Rathbones Group Plc | Interim results 2025 21 H1 INTEGRATION TO H2 OPTIMISATION ‒ Enabling client facing teams ‒ Technology deployment ‒ Synergy delivery ‒ Cost discipline ‒ Welcoming new skills and expertise
Slide 22: In H2 we will…
Rathbones Group Plc | Interim results 2025 22 IN H2 WE WILL… Commence buyback as part of new capital allocation framework Complete optimisation phase Launch planned propositions Leverage enhanced marketing and distribution capabilities to drive growth, supported by the scale and reach of enlarged bu
Slide 23: Appendix
Rathbones Group Plc | Interim results 2025 23 APPENDIX
Slide 24: Investment management client base
Rathbones Group Plc | Interim results 2025 24 INVESTMENT MANAGEMENT CLIENT BASE Analysis of funds under management and administration (FUMA)[1] Service level by FUMA Fund type by FUMA 2% Discretionary Private clients 10% 13% Advisory ISAs 8% 32% Charities Execution-only Pensions 16% Trusts 88% Other
Slide 25: Where our clients' assets are invested
Rathbones Group Plc | Interim results 2025 25 WHERE OUR CLIENTS’ ASSETS ARE INVESTED[1] 4.4% 5.2% 3.7% 3.2% 3.3% DIRECT HOLDINGS (RIM ONLY) 9.5% 7.9% 7.4% 10.5% 11.9% 50.1% 44% 48.8% 44.6% 43.4% 41.5% COLLECTIVES (RIM ONLY) 56% 24.9% 29.4% 28.6% 21.0% 19.8% 18.5% 19.1% 19.4% 11.1% 12.8% FY21 FY22 FY
Slide 26: Underlying expenses reflect cost headwinds
Rathbones Group Plc | Interim results 2025 26 UNDERLYING EXPENSES REFLECT COST HEADWINDS Underlying Expenses – six months ended 30 June 2025 £m HY25 HY24 Change Change % Fixed staff 152.8 149.6 3.2 2.1% — Fixed staff costs for HY 25 reflect the effects of salary inflation (c3.0%) from 1 April (legac
Slide 27: Integration costs running in line with expectations
Rathbones Group Plc | Interim results 2025 27 INTEGRATION COSTS RUNNING IN LINE WITH EXPECTATIONS IW&I integration costs – actual costs incurred relative to guidance Original Total to — Total integration costs incurred during the half-year £m guidance FY23 FY24 H125 date of £23.4 million is in line
Slide 28: Analysing the balance sheet
Rathbones Group Plc | Interim results 2025 28 ANALYSING THE BALANCE SHEET Unaudited 30 Audited 31 Unaudited 30 Audited 31 June 2025 December June 2025 December Assets Liabilities £m 2024 £m 2024 £m £m Cash and balances with central banks 1,811.0 1,166.0 Deposits by banks 17.5 3.8 Settlement balances
Slide 29: Rathbones Asset Management funds
Rathbones Group Plc | Interim results 2025 29 RATHBONES ASSET MANAGEMENT FUNDS Funds FY24 (£bn) HY25 (£bn) Rathbone Multi-Asset Portfolios 6.9 7.1 Rathbone Global Opportunities Fund 4.1 4.0 Rathbone Ethical Bond Fund 2.0 1.9 Offshore Funds 0.7 0.6 Rathbone Income Fund 0.6 0.6 Greenbank Multi-Asset P
Slide 30: Shareholder split as at 30 June 2025
Rathbones Group Plc | Interim results 2025 30 SHAREHOLDER SPLIT AS AT 30 JUNE 2025 Investec Fidelity Investments Current Rathbones staff 29% 32% Lindsell Train Blackrock Vanguard Group Heronbridge 2% Marathon Asset Management 9% 2% Aberforth Partners 2% 3% Janus Henderson 3% 8% 4% 4% Other
Slide 31: Important information
Rathbones Group Plc | Interim results 2025 31 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