Slide 1: 2024 Preliminary Results
2024 PRELIMINARY RESULTS February 2025 Rathbones Group Plc
Slide 2: Contents
Rathbones Group Plc | Preliminary results 2024 2 CONTENTS Financial update Margin and guidance Integration update The future opportunity Appendices
Slide 3: In the last year we have…
Rathbones Group Plc | Preliminary results 2024 3 IN THE LAST YEAR WE HAVE… Significantly advanced the combination with IW&I and exceeded 2024 targets Materially progressed client migration and organisational design changes that will secure future synergies Fully integrated Saunderson House and estab
Slide 4: Financial update
Rathbones Group Plc | Preliminary results 2024 4 FINANCIAL UPDATE
Slide 5: Underlying profit growth drives margin progression
Rathbones Group Plc | Preliminary results 2024 5 UNDERLYING PROFIT GROWTH DRIVES MARGIN PROGRESSION FUMA (£bn) Operating income (£m) Underlying PBT (£m) and margin (%) +3.1pts 3.7% 57% 21.3% 22.3% 25.4% 109.2 895.9 79% 105.3 42.7 364.5 42.2 571.1 87.9 227.6 63.1 66.5 531.4 60.2 483.2 127.1 455.9 97.
Slide 6: Dividend growth of 7% reinforces progressive dividend policy
Rathbones Group Plc | Preliminary results 2024 6 DIVIDEND GROWTH OF 7% REINFORCES PROGRESSIVE DIVIDEND POLICY Statutory PBT (£m) Underlying basic EPS (p) Dividends (p) 73% 19% 7% 93.0 161.6 99.6 130.8 135.8 87.0 84.0 64.1 57.6 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 FY24 reflects full year of I
Slide 7: Gross inflows remain strong despite integration focus
Rathbones Group Plc | Preliminary results 2024 7 GROSS INFLOWS REMAIN STRONG DESPITE INTEGRATION FOCUS FUMA flows by segment – year ended 31 December 2024 Wealth Asset Group Rathbones £bn Management Management eliminations Group Opening FUMA 96.1 13.8 (4.6) 105.3 — Gross inflows remained strong at 1
Slide 8: RIM discretionary and managed net inflows show significant improvement
Rathbones Group Plc | Preliminary results 2024 8 RIM DISCRETIONARY AND MANAGED NET INFLOWS SHOW SIGNIFICANT IMPROVEMENT Wealth Management FUMA flows – year ended 31 December 2024 — Rathbones Investment Management (RIM): Transfers Opening Net Market and Closing Discretionary and Managed net inflows m
Slide 9: Asset Management funds grow by 14.5%
Rathbones Group Plc | Preliminary results 2024 9 ASSET MANAGEMENT FUNDS GROW BY 14.5% Asset Management FUMA flows – year ended 31 December 2024 — Asset Management FUMA grew by £2.0 billion (14.5%) £bn Single Strategy Multi Asset Total — Net inflows reflect success of Rathbones Asset Management Openi
Slide 10: Underlying growth across all principal income streams
Rathbones Group Plc | Preliminary results 2024 10 UNDERLYING GROWTH ACROSS ALL PRINCIPAL INCOME STREAMS Operating Income – year ended 31 December 2024 — Wealth Management and Asset Management fee income £m FY23 FY24 Change Change % benefitted from higher average FUMA and completion of the migration
Slide 11: Income margins remain resilient
Rathbones Group Plc | Preliminary results 2024 11 INCOME MARGINS REMAIN RESILIENT Income Margins – year ended 31 December 2024[1] Fee & Commission Income Margin Treasury Income (% of FUMA) Margin — FUMA-driven income margins are calculated on the gross (% of Liquidity) value of average FUMA of the r
Slide 12: Underlying expenses benefit from synergies and cost discipline
Rathbones Group Plc | Preliminary results 2024 12 UNDERLYING EXPENSES BENEFIT FROM SYNERGIES AND COST DISCIPLINE Underlying Expenses – year ended 31 December 2024 — 2024 costs include a full year of the IW&I cost base relative to one £m FY23 FY24 Change Change % quarter in 2023 Fixed staff 206.1 296
Slide 13: Synergy delivery ahead of first year target
Rathbones Group Plc | Preliminary results 2024 13 SYNERGY DELIVERY AHEAD OF FIRST YEAR TARGET Actual synergy realisation – year ended 31 December 2024 — Synergy delivery of £30.1 million on an annualised Synergies Synergy Remaining £m Delivered Target synergies run rate bases is significantly ahead
Slide 14: Non-underlying costs
Rathbones Group Plc | Preliminary results 2024 14 NON-UNDERLYING COSTS Non-underlying Costs – year ended 31 December 2024 £m FY23 FY24 Change — Amortisation costs for 2024 are the first full year of the increased charge in relation to the intangibles arising in Underlying operating profit 127.1 227.
Slide 15: Capital allocation priorities to be assessed post IW&I migration
Rathbones Group Plc | Preliminary results 2024 15 CAPITAL ALLOCATION PRIORITIES TO BE ASSESSED POST IW&I MIGRATION Capital surplus after final proposed dividend (£m) — The group's capital position remains robust 142 109 — The final proposed dividend of 93p equates to a total payment of £65.2 million
Slide 16: Margin and guidance
Rathbones Group Plc | Preliminary results 2024 16 MARGIN AND GUIDANCE
Slide 17: Our path to a 30% operating margin from end 2026
Rathbones Group Plc | Preliminary results 2024 17 OUR PATH TO A 30% OPERATING MARGIN FROM END 2026 We continue to work towards the delivery of a 30% underlying operating margin three years post completion 75 to of the IW&I transaction (i.e. from September 2026), 100 ppts 30% reflecting: 125 to 325 t
Slide 18: 2025 guidance
Rathbones Group Plc | Preliminary results 2024 18 2025 GUIDANCE Improvement in FUMA net flows expected in H2 FEE AND COMMISSION Advice income expected to show higher rate of growth than 2024 INCOME Commission income seasonality likely to be flatter in 2025 due to October 2024 budget activity Chargin
Slide 19: Integration update
INTEGRATION UPDATE
Slide 20: Good progress through IW&I integration
Rathbones Group Plc | Preliminary results 2024 20 GOOD PROGRESS THROUGH IW&I INTEGRATION 2024 ACHIEVEMENTS DURING H1 2025 OTHER 2025 PLANS — Co-located all Rathbones & IW&I offices CLIENT MIGRATION — Delivery of combined organisational — Operational preparation for planned design and operating model
Slide 21: The future opportunity
Rathbones Group Plc | Preliminary results 2024 21 THE FUTURE OPPORTUNITY
Slide 22: Strong market positioning for future growth
Rathbones Group Plc | Preliminary results 2024 22 STRONG MARKET POSITIONING FOR FUTURE GROWTH WE ARE ONE OF THE LARGEST UK WEALTH MANAGERS[1] (£BN) THERE IS A SIGNIFICANT OPPORTUNITY FOR UK WEALTH MANAGERS ST JAMES'S PLACE 190 — Ageing population who need to make money last longer £2.9tn[2] SCHRODER
Slide 23: A service-led approach that builds high quality revenues
Rathbones Group Plc | Preliminary results 2024 23 A SERVICE-LED APPROACH THAT BUILDS HIGH QUALITY REVENUES MEANINGFUL ADVANTAGES SERVICE-LED APPROACH — A well-respected franchise in a growing industry — Strong belief in relationship-led services to drive resilient revenues and secure new clients in
Slide 24: A comprehensive range of services
Rathbones Group Plc | Preliminary results 2024 24 A COMPREHENSIVE RANGE OF SERVICES WEALTH MANAGEMENT INVESTMENT MANAGEMENT FINANCIAL PLANNING AND ADVICE ASSET MANAGEMENT Sustainable International Multi-Asset Single Strategy Institutional Investment Financial Funds Segregated Investment Investment O
Slide 25: A renewed focus on our strategic pillars
Rathbones Group Plc | Preliminary results 2024 25 A RENEWED FOCUS ON OUR STRATEGIC PILLARS ENRICHING THE CLIENT AND ADVISOR PROPOSITION AND EXPERIENCE SUPPORTING AND DELIVERING GROWTH INSPIRING OUR PEOPLE OPERATING MORE EFFICIENTLY
Slide 26: Enriching the client and advisor proposition and experience
Rathbones Group Plc | Preliminary results 2024 26 ENRICHING THE CLIENT AND ADVISOR PROPOSITION AND EXPERIENCE PROMOTING MORE MORE PROMOTING ENHANCING DEVELOPING USING THE ADVICE-LED ADVICE-LED INVESTMENT NEW TECHNOLOGY CONVERSATI CONVERSATIONS PROCESSES PROPOSITIONS OPPORTUNITY ONS — 122 financial —
Slide 27: Supporting and delivering growth
Rathbones Group Plc | Preliminary results 2024 27 SUPPORTING AND DELIVERING GROWTH BUILDING BRAND, LEVERAGING BUILDING GROWING TARGETED STRATEGIC DISTRIBUTION RAM MARKETING PARTNERSHIPS — Digital and face-to- — Upskilled resources — Vision advisor — Highly experienced face lead — Managing team growt
Slide 28: Inspiring our people / Operating more efficiently
Rathbones Group Plc | Preliminary results 2024 28 INSPIRING OUR PEOPLE OPERATING MORE EFFICIENTLY TAKING ADVANTAGE A COMPELLING OF FUTURE VISION OPPORTUNITIES ― Employer of choice ― Successful business integration ― Training and career development ― Best of both applications, opportunities process a
Slide 29: In the next year we will…
Rathbones Group Plc | Preliminary results 2024 29 IN THE NEXT YEAR WE WILL… Progress towards our 30% margin target Strengthen marketing and distribution capability Deliver more advice-led conversations Selected launch of new propositions Grow Rathbones Asset Management Selectively deploy AI and robo
Slide 30: Q&A
Rathbones Group Plc | Preliminary results 2024 30 Q&A
Slide 31: Appendix
Rathbones Group Plc | Preliminary results 2024 31 APPENDIX
Slide 32: The Rathbones investment case
Rathbones Group Plc | Preliminary results 2024 32 THE RATHBONES INVESTMENT CASE 1 2 3 4 5 6 7 8 Relationship-led Trusted brand Leveraging an Investing in Operating Accelerating Robust Banking business model operating at in-house asset marketing and responsibly growth with financials license scale ma
Slide 33: Investment management client base
Rathbones Group Plc | Preliminary results 2024 33 INVESTMENT MANAGEMENT CLIENT BASE Analysis of funds under management[1] Service level by FUMA Fund type by FUMA 2% Discretionary 10% Private clients 10% Advisory 8% ISAs 35% Charities Execution-only 16% Pensions Trusts 88% 10% Other 21% Size of clien
Slide 34: Where our clients' assets are invested
Rathbones Group Plc | Preliminary results 2024 34 WHERE OUR CLIENTS’ ASSETS ARE INVESTED[1] 5.5% 4.4% 5.2% 3.7% 3.2% DIRECT HOLDINGS (RIM ONLY) 9.4% 10.5% 11.9% 9.5% 7.9% 57% 48.8% 41.8% 44.6% 43.4% COLLECTIVES (RIM ONLY) 41.5% 43% 30.6% 24.9% 29.4% 28.6% 21.0% 18.5% 19.1% 12.7% 11.1% 12.8% FY 20 FY
Slide 35: Rathbones Asset Management: an in-house asset manager provides benefits to the Group
Rathbones Group Plc | Preliminary results 2024 35 RATHBONES ASSET MANAGEMENT: AN IN-HOUSE ASSET MANAGER PROVIDES BENEFITS TO THE GROUP RAM FUMA (£bn) — Rathbones Select and Managed DIVERSIFIED PROPOSITIONS powered by RAM Multi-Asset funds — Customised investment solutions — Shared research ECONOMIES
Slide 36: Rathbones Asset Management funds
Rathbones Group Plc | Preliminary results 2024 36 RATHBONES ASSET MANAGEMENT FUNDS FY23 FY24 2024 (2023) Quartile 1 3 5 Funds (£bn) (£bn) Ranking year years years Rathbone Multi-Asset Portfolios 5.3 6.9 Rathbone Ethical Bond Fund 1 (1) 2 (2) 2 (1) Rathbone Global Opportunities Fund 3.6 4.1 Rathbone
Slide 37: Integration costs running in line with expectations
Rathbones Group Plc | Preliminary results 2024 37 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 year of £m guidance FY23 FY24 date £75.5 million is in line with e
Slide 38: Analysing the balance sheet
Rathbones Group Plc | Preliminary results 2024 38 ANALYSING THE BALANCE SHEET 31 December 31 December 31 December 31 December Assets 2023 2024 Liabilities 2023 2024 £m £m £m £m Cash and balances with central banks 1,038.3 1,166.0 Deposits by banks 12.4 3.8 Settlement balances 165.7 128.3 Settlement
Slide 39: Important information
Rathbones Group Plc | Preliminary results 2024 39 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 excha