Rathbones Group PLC (RTBBF) Q2 2026 Earnings Report

The call presents a predominantly positive operational and financial picture: strong FUMA growth, double‑digit underlying profit and EPS increases, improving Wealth Management flows, successful synergy delivery, robust capital position, and measurable progress on strategy, digital adoption, brand and client experience. Major challenges are centered on regulatory remediation costs (Skilled Person Review), H1 group net outflows (partly driven by Q1), continued pressure in the active asset management business, and a headwind to margins from the cessation of cash fees. Management has quantified the regulatory cost exposure, completed buybacks, and revised margin guidance (Q4 target lowered from 30.0% to 28.7%), and describes remediation as manageable and largely insured. Overall, positive operational momentum and financial improvement outweigh the notable but contained risks and headwinds.

Guidance from the call stressed continued growth but a revised margin target: FUMA was £120.7bn (+10.7% y/y; +£5.1bn YTD), operating income £487.5m (+8.6%), underlying PBT £123.2m (+14.4%) with an operating margin of 25.3% (+1.3pp), statutory PBT £72.1m (+15.7%), underlying EPS £0.885 (+17.1%) and an interim dividend of £0.32 (+3.2%); H1 group net outflows were £0.9bn (Q1 £845m outflow; Q2 nearly neutral at £31m outflow; Wealth Management Q2 inflows £450m and underlying WM H1 inflow c.£0.5bn after exclusions). Management reiterated £76m of synergy delivery (adding ~£17m to H1 PBT), confirmed the Skilled Person Review incremental cost of ~£60m (portion recognized/committed) and remediation of ~4,700 EDD clients by year‑end; Salesforce is due end‑Q3 reducing tech costs by ~£6m in H2 (benefiting Q4). The cessation of cash charges will cut the Wealth fee margin by ~1.5bps and is a ~1.3pp headwind to H2 margin, so the Q4 margin target was revised from 30% to 28.7% (subject to c.3% FUMA growth, stable inflation and market rates); capital remains strong with a total capital ratio of 18.3% at 30 June and a £166m surplus after completing buybacks of >3.5m shares (~3.3%).