Rathbones revises operating margin to 28.7% amid FCA review and reports £1bn in net outflows; profits up 15.7%

Rathbones has reported a 15.7% increase in pre-tax profits, rising from £62.3 million to £72.1 million in the first half of 2026. This growth was supported by an 8.6% increase in operating income, which climbed from £449.1 million to £487.5 million.¹²

However, the firm faced significant challenges, including net outflows of £1 billion and total net outflows of £0.9 billion for the period. The Financial Conduct Authority (FCA) review has led to costs of £19 million, with expectations of reaching £60 million as the company navigates regulatory scrutiny. Costs include the cessation of fees on cash elements of portfolios, which is projected to reduce income and operating profit by £9 million in the second half.³⁴⁵⁶

Despite these challenges, funds under management and administration (FUMA) rose by 10.7% year-on-year to £120.7 billion. Group chief executive Jonathan Sorrell stated, “The first half of 2026 has been demanding, but it has also demonstrated what Rathbones is capable of.” He emphasized the firm’s commitment to addressing FCA recommendations and maintaining a focus on long-term ambitions.⁷

The operating margin has been revised to 28.7% due to regulatory and fee changes, reflecting the ongoing adjustments in a challenging market environment. Strategic progress and capital strength remain robust, indicating a resilient outlook for the firm moving forward.