Rathbones Group (LON:RAT) Posts Quarterly Earnings Results

Posted by Francis Steltz on Jul 29th, 2026

Rathbones Group (LON:RAT – Get Free Report) issued its earnings results on Wednesday. The company reported GBX 88.50 earnings per share for the quarter, Digital Look Earnings reports. Rathbones Group had a return on equity of 8.33% and a net margin of 10.85%.

Here are the key takeaways from Rathbones Group’s conference call:

Positive Sentiment: First-half performance improved across key measures: FUMA rose 10.7% year over year to £120.7 billion, operating income increased 8.6% to £487.5 million, and underlying profit before tax grew 14.4% to £123.2 million. The operating margin expanded to 25.3%, while the interim dividend increased 3.2%.
Positive Sentiment: Wealth-management flows improved materially, moving to a £450 million net inflow in the second quarter and neutral flows for the first half. Excluding tax-driven and execution-only outflows, underlying wealth-management flows were approximately £500 million positive, supported by higher gross inflows and growth in financial-planning relationships.
Negative Sentiment: The regulatory Skilled Person Review remains a significant cost and execution risk, with total incremental costs estimated at £60 million and around 4,700 enhanced-due-diligence clients subject to restrictions. Management reported no material client outflows attributable to the review and expects remediation work for restricted clients to be completed by year-end, but insurance does not cover all potential fee repayments or fines.
Negative Sentiment: The cessation of fees on portfolio cash will reduce the wealth-management fee margin by roughly 1.5 basis points in the second half and prompted a revision of the fourth-quarter operating-margin target to 28.7% from 30%. Management expects technology savings and efficiency initiatives to offset part of the pressure, but not during 2026.
Neutral Sentiment: Asset management continues to face difficult conditions for active U.K. managers and recorded weaker flows, although management remains committed to its quality-and-value investment style. Rathbones plans to add selected strategies and pursue institutional opportunities while emphasizing patience until investment performance improves.

Rathbones Group Stock Down 2.1%

Rathbones Group stock traded down GBX 36 during mid-day trading on Wednesday, reaching GBX 1,682. 138,010 shares of the company were exchanged, compared to its average volume of 573,062. The company has a debt-to-equity ratio of 14.65, a quick ratio of 0.14 and a current ratio of 190.82. The firm has a market cap of £1.73 billion, a P/E ratio of 16.06, a PEG ratio of -26.52 and a beta of 0.72. The business has a fifty day moving average of GBX 1,760.59 and a 200 day moving average of GBX 1,974.61. Rathbones Group has a 12-month low of GBX 1,580 and a 12-month high of GBX 2,500.

Rathbones Group announced that its board has authorized a share repurchase program on Wednesday, June 17th that authorizes the company to buyback 0 shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Terri Duhon acquired 500 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The stock was purchased at an average cost of GBX 1,614 per share, for a total transaction of £8,070. Also, insider Jonathan Sorrell purchased 15,320 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were purchased at an average cost of GBX 1,630 per share, with a total value of £249,716. Over the last 90 days, insiders have acquired 33,236 shares of company stock valued at $54,276,234. 1.65% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Royal Bank Of Canada decreased their price objective on Rathbones Group from GBX 2,400 to GBX 1,950 and set an “outperform” rating for the company in a report on Thursday, June 18th. Jefferies Financial Group reiterated an “underperform” rating and set a GBX 1,780 target price on shares of Rathbones Group in a report on Wednesday, June 17th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of GBX 1,982.50.

Check Out Our Latest Analysis on Rathbones Group

About Rathbones Group

(Get Free Report)

With roots dating back to 1742, Rathbones is one of the UK’s leading providers of investment and wealth management services for private clients (individuals and families), charities, trustees and professional partners. Rathbones’ purpose is to help more people invest their money well, so they can live well.

Rathbones has been trusted for generations to manage, preserve and grow clients’ wealth and services include discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services.