Third quarter trading update
Summary by AI BETAClose X
Third quarter trading update
Rathbones reports strong financial performance and strategic momentum
Funds under management and administration up 7.2% and nine-month operating income up 6.7% year on year
Wealth Management delivers second consecutive quarter of net inflows
Rathbones Group Plc (“Rathbones”) announces a trading update for the three months ended 30 September 2026.
Jonathan Sorrell, Group Chief Executive, said:
"In the third quarter, we continued to deliver progress against our strategy. We generated net inflows in Wealth Management for a second consecutive quarter, strong investment performance for our Wealth Management clients and hit operational milestones that position us for growth.
Our ambition is to be the best wealth manager in the UK, by far, and the growth opportunity ahead of Rathbones is substantial. We are broadening how we help clients with the launch of on-demand Financial Planning, and have received regulatory authorisation for Rathbones Ireland, which means we can fully service existing and new clients in Ireland and in the EU. We have also launched our first brand campaign, highlighting our purpose to help more people invest well so they can live well.
Our regulatory programme is on track. We expect to start progressively lifting restrictions relating to existing Enhanced Due Diligence clients in Q4.
With flows improving and our strategic initiatives making good progress, we are encouraged by the momentum in our business."
Financial Highlights
• Total operating income was £243.6 million for the quarter, up 3.0% year on year, and £731.1 million for the first nine months, up 6.7%, reflecting the strength of our business model.
• Funds under management and administration (FUMA) increased 7.2% year on year to £121.1 billion at 30 September 2026 (30 June 2026: £120.7 billion, 30 Sept 2025: £113.0 billion), of which £112.9 billion is in our Wealth Management business. This increase was supported by positive market and investment performance.
• Wealth Management attracted net inflows of £24 million in Q3 (Q3 2025: net outflows of £0.3 billion), the second consecutive quarter of net inflows and a marked improvement vs Q3 2025. This is despite the voluntary pause on inflows from Enhanced Due Diligence (EDD) clients and a cautious backdrop ahead of the UK Autumn Budget. Net flows remained positive for the first nine months of the year at £11 million, compared to net outflows of £0.8 billion in the first nine months of 2025. Excluding lower-margin, execution-only services, Wealth Management recorded positive net inflows of £0.3 billion year to date.
• Asset Management saw net outflows of £425 million in Q3, reflecting continued pressure on active equity investment in the UK retail market, bringing Group net outflows to £401 million in Q3.
• Rathbones issued £60 million of tier 2 capital in September to further improve the efficiency of the Group’s capital structure, redeeming the £40 million of tier 2 notes issued in 2021.
Strategic and Operational Highlights
• Clients continue to benefit from strong investment outcomes, with Wealth Management client portfolios outperforming ARC[1] benchmarks over the quarter, year to date, and over one- and three-year periods.
• Rathbones launched its on-demand advice service, providing clients access to Financial Planning when they need it at key points in their lives, without requiring them to commit to an ongoing service.
• Rathbones Ireland received a MiFID licence from the Central Bank of Ireland, enabling the Group to fully service new and existing clients in Ireland and the European Union.
• Rathbones launched its first brand campaign 'Invest well. Live well.' in September, increasing awareness of Rathbones and supporting our long-term growth ambitions.
Regulatory programme on track
The regulatory programme announced in June continues to progress on schedule, and targeted client reviews have started. There have been no material client outflows attributable to the programme, the impact on new business activity has been contained, and colleague attrition remains in line with normal experience.
The new Customer Risk Rating framework is in place. We have completed our file review pilot, applying the framework to a sample of restricted EDD clients, and the results indicate a material reduction in the number of clients classified as requiring EDD.
We expect to begin progressively lifting restrictions for existing EDD clients in Q4. By the end of the year we expect to have reviewed restricted EDD clients representing approximately two thirds of affected FUMA with the remainder completed by early Q2 2027. At the point clients are assessed as no longer requiring EDD, they will be released from restrictions on inflows; clients still requiring EDD will be released as they are remediated.
We have made good progress on the wider programme to address the findings of the Skilled Person review and expect to provide further guidance in February when we announce our preliminary results for 2026 on the likely timing of removing the restriction on accepting new EDD clients.
Our estimate of the cost of this programme through to mid-2028 remains unchanged at approximately £60 million net of expected insurance recoveries.
Update on Vision
Separately, our wholly owned subsidiary Vision Independent Financial Planning Limited (“Vision”) has received a requirement notice from the FCA under section 166. We expect the costs associated with this regulatory review to be approximately £2.5 million and have provided for this accordingly.
Following a reduction in the number of adviser firms on the Vision network during the course of this year, we expect the run-rate pre-tax profitability of the Group in respect of Vision to reduce by approximately £4.0 million from 2027 onwards. Vision remains committed to continuous improvement in its client service, systems and compliance processes.
Rathbone Investment Management Limited (“RIM”) continues to manage £1.9 billion of FUMA for clients of adviser firms that have left the Vision network in 2026. An adviser firm leaving the network does not in itself change the relationship between RIM, the adviser firm and the clients.
Outlook and Q4 trading update
With the planned Q4 2026 implementation of Salesforce, bringing client lifecycle and relationship management together on a single platform, and ongoing cost efficiencies being achieved, we continue to expect to meet our underlying operating margin target of 28.7% in Q4, subject to the conditions set out on 27 February regarding FUMA growth, inflation, and interest rates. The margin progression this will represent for the year leaves us in a strong position as we look forward to 2027.
A Q4 trading update will be published on 14 January 2027.
Operating income
|
|
2026 |
2025 |
Change |
Change |
|
9 months ended 30 September |
£m |
£m |
£m |
% |
|
Wealth Management |
|
|
|
|
|
Fees |
466.2 |
434.0 |
32.2 |
7.4% |
|
Commissions |
80.4 |
71.5 |
8.9 |
12.4% |
|
Net interest income |
69.3 |
61.7 |
7.6 |
12.3% |
|
— Fees from advisory services1 |
48.8 |
43.1 |
5.7 |
13.2% |
|
— Other income2 |
3.1 |
12.1 |
(9.0) |
(74.4)% |
|
|
667.8 |
622.4 |
45.4 |
7.3% |
|
Asset Management |
63.3 |
63.1 |
0.2 |
0.3% |
|
Operating income |
731.1 |
685.5 |
45.6 |
6.7% |
|
|
2026 |
2025 |
Change |
Change |
|
Quarter ended 30 September |
£m |
£m |
£m |
% |
|
Wealth Management |
|
|
|
|
|
Fees |
155.8 |
149.0 |
6.8 |
4.6% |
|
Commissions |
25.7 |
25.7 |
– |
–% |
|
Net interest income1 |
22.9 |
23.8 |
(0.9) |
(3.8)% |
|
Fees from advisory services2 |
17.4 |
15.0 |
2.4 |
16.0% |
|
Other income1 |
0.9 |
1.4 |
(0.5) |
(35.7)% |
|
|
222.7 |
214.9 |
7.8 |
3.6% |
|
Asset Management |
20.9 |
21.5 |
(0.6) |
(2.8)% |
|
Operating income |
243.6 |
236.4 |
7.2 |
3.0% |
|
1. Net interest income should be considered in conjunction with Other income which includes net interest margin on client money balances. In 2025, prior to the IW&I migration, the income generated from IW&I client money deposits was reported within Other income. Following migration, this is included in 'Net interest income'. 2. Including income from financial planning services, trust and tax. | ||||
Funds under management and administration (FUMA)
(I) Segment FUMA
|
|
Opening FUMA |
Gross inflows |
Gross outflows |
Net |
Transfers |
Market & investment performance |
Closing FUMA |
Annualised Net Growth |
|
9 months ended 30 September 2026 |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
% |
|
Wealth Management |
106,205 |
8,324 |
(8,313) |
11 |
– |
6,678 |
112,894 |
0.0 |
|
|
|
|
|
|
|
|
|
|
|
Asset Management |
|
|
|
|
|
|
|
|
|
Gross segment FUMA inclusive of intra-group |
16,600 |
2,320 |
(3,308) |
(988) |
– |
230 |
15,842 |
(7.9) |
|
Intra-group FUMA3 |
(7,188) |
(1,230) |
928 |
(302) |
– |
(160) |
(7,650) |
5.6 |
|
Asset Management excluding intra-group |
9,412 |
1,090 |
(2,380) |
(1,290) |
– |
70 |
8,192 |
(18.3) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
115,617 |
9,414 |
(10,693) |
(1,279) |
– |
6,748 |
121,086 |
(1.5) |
|
|
Opening FUMA |
Gross inflows |
Gross outflows |
|
Transfers |
Market & investment performance |
Closing FUMA |
Annualised Net Growth |
|
Quarter ended 30 September 2026 |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
% |
|
Wealth Management |
112,081 |
2,690 |
(2,666) |
24 |
– |
789 |
112,894 |
0.1 |
|
|
|
|
|
|
|
|
|
|
|
Asset Management |
|
|
|
|
|
|
|
|
|
Gross segment FUMA inclusive of intra-group |
16,336 |
622 |
(1,055) |
(433) |
– |
(61) |
15,842 |
(10.6) |
|
Intra-group FUMA3 |
(7,682) |
(309) |
317 |
8 |
– |
24 |
(7,650) |
(0.4) |
|
Asset Management excluding intra-group |
8,654 |
313 |
(738) |
(425) |
– |
(37) |
8,192 |
(19.6) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
120,735 |
3,003 |
(3,404) |
(401) |
– |
752 |
121,086 |
(1.3) |
(II) Breakdown of segmental FUMA and flows
|
9 months ended 30 September 2026 |
Opening FUMA £m |
Gross inflow £m |
Gross outflow £m |
Net flows £m |
Transfers £m |
Market and investment performance £m |
Closing FUMA £m |
Annualised Net Growth % |
|
Discretionary & Managed |
94,707 |
7,437 |
(7,139) |
298 |
(27) |
5,977 |
100,955 |
0.4 |
|
MPS & Select services |
4,073 |
223 |
(188) |
35 |
3 |
103 |
4,214 |
1.1 |
|
Execution only |
7,425 |
664 |
(986) |
(322) |
24 |
598 |
7,725 |
(5.8) |
|
Wealth Management |
106,205 |
8,324 |
(8,313) |
11 |
– |
6,678 |
112,894 |
0.0 |
|
Multi Asset funds |
9,361 |
1,421 |
(1,501) |
(80) |
– |
222 |
9,503 |
(1.1) |
|
Single Strategy funds |
7,239 |
899 |
(1,807) |
(908) |
– |
8 |
6,339 |
(16.7) |
|
Asset Management - gross segmental FUMA |
16,600 |
2,320 |
(3,308) |
(988) |
– |
230 |
15,842 |
(7.9) |
|
Intra-group FUMA3 |
(7,188) |
(1,230) |
928 |
(302) |
– |
(160) |
(7,650) |
5.6 |
|
Asset Management excluding intra-group |
9,412 |
1,090 |
(2,380) |
(1,290) |
– |
70 |
8,192 |
(18.3) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
115,617 |
9,414 |
(10,693) |
(1,279) |
– |
6,748 |
121,086 |
(1.5) |
|
Quarter ended 30 September 2026 |
Opening FUMA £m |
Gross inflow £m |
Gross outflow £m |
Net flows £m |
Transfers £m |
Market and investment performance £m |
Closing FUMA £m |
Annualised Net Growth % |
|
Discretionary & Managed |
100,205 |
2,376 |
(2,329) |
47 |
(27) |
730 |
100,955 |
0.2 |
|
MPS & Select services |
4,227 |
62 |
(70) |
(8) |
1 |
(6) |
4,214 |
(0.8) |
|
Execution only |
7,649 |
252 |
(267) |
(15) |
26 |
65 |
7,725 |
(0.8) |
|
Wealth Management |
112,081 |
2,690 |
(2,666) |
24 |
– |
789 |
112,894 |
0.1 |
|
Multi Asset funds |
9,668 |
381 |
(528) |
(147) |
– |
(18) |
9,503 |
(6.1) |
|
Single Strategy funds |
6,668 |
241 |
(527) |
(286) |
– |
(43) |
6,339 |
(17.2) |
|
Asset Management - gross segmental FUMA |
16,336 |
622 |
(1,055) |
(433) |
– |
(61) |
15,842 |
(10.6) |
|
Intra-group FUMA3 |
(7,682) |
(309) |
317 |
8 |
– |
24 |
(7,650) |
(0.4) |
|
Asset Management excluding intra-group |
8,654 |
313 |
(738) |
(425) |
– |
(37) |
8,192 |
(19.6) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
120,735 |
3,003 |
(3,404) |
(401) |
– |
752 |
121,086 |
(1.3) |
|
3. Intragroup FUMA comprises assets managed by the Asset Management segment which relates to propositions of the Wealth Management segment. | ||||||||
22 October 2026
For further information contact:
Investors
Nicolas Duperrier, Investor Relations
Tel: +44 (0)20 7399 0405
Email: nicolas.duperrier@rathbones.com
Press
Tessa Curtis, Director of Corporate Communications & Affairs
Tel: +44 (0)7833 346238
Email: tessa.curtis@rathbones.com
Rathbones Group Plc
Rathbones Group Plc (Rathbones), through its subsidiaries, is one of the UK’s leading providers of investment and wealth management services for private clients, charities, trustees and professional partners. This includes discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services.
Rathbones manages £121.1 billion of client assets, of which £15.8 billion is managed by its asset management arm, Rathbones Asset Management Limited. A FTSE 250 company (LSE:RAT), Rathbones has over 3,300 employees, including over 700 investment managers and financial planners, in 21 offices across the UK and the Channel Islands, connecting its clients with high-quality, personalised wealth management services.
[1] ARC provides investment performance benchmarks to the wealth management industry
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 3 hours ago Oxford Nanopore Technologies
- 3 hours ago AVI Global Trust
- 4 hours ago LSL Property Services
- 4 hours ago Bluebird Merchant Ventures (DI)
- 4 hours ago Power Probe PLC