Rathbones has experienced a dip in profit due to volatile equity markets and rising costs, yet the firm maintains its growth forecast for 2025.
The wealth manager's results, largely meeting analyst expectations, showed that underlying profit before tax fell to £107.7m from £112.1m, while net outflows rose to £1bn from £0.6bn, as reported by .
This was attributed to client migration activity from the Investsec Wealth and Investment platform to Rathbones, following the FTSE 250 company's acquisition of the business.
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Gross inflows also decreased, falling from £2.7bn to £2.5bn, as investment managers concentrated on integrating IW&I during the first quarter.
However, the group saw a slight increase in operating income by 0.4 per cent to £449.1m from £447.4m, as the impact of subdued markets, due to tariffs and other economic tensions in the first quarter, was balanced by stronger conditions in the second.
Iain Hooley, chief financial officer at Rathbones, commented: "We were affected a bit by the volatility we had in the first half. The first quarter billion took place when the markets were relatively low...but nevertheless they are resilient numbers.
"We expect a better second half. We're very much focused on the growth opportunity we now have."
Following the release of results, shares rose nearly 2 per cent, suggesting investors are optimistic about further growth in the second half of the year.
Looking ahead
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Despite a turbulent opening to the year, characterised by market instability and acquisition expenses totalling £23.2m thus far in 2025, Rathbones remains confident that full-year results will align with market expectations.
Additional margin enhancement is anticipated during the second half as the IW&I platform faces decommissioning and a new chief executive prepares to assume control.
The group, which was founded in Liverpool and retains a large presence there, has also identified prospects arising from the Mansion House Accords, with efforts to boost investment activity raising expectations that the wealth manager can attract fresh clientele.
Hooley said: "The regulator is increasingly looking to support growth and anything the government or regulator can do to encourage people to invest is a good thing for society and it's a good thing for our business."
He further recognised the mounting demand for retirement planning amid an ageing demographic, alongside "general growth in household wealth" necessitating increased consumer advisory services.
Hooley noted that the FTSE 250 company "has a strong capital base" with "a surplus" available for shareholder returns, as the firm launched a share repurchase programme worth up to £50m.
Shareholder dividends will also rise by 3.3 per cent to 31p.