Rathbones Group plc (LSE:RAT) reported total net outflows of £0.8 billion during the first quarter of 2026, with the majority attributed to its Wealth Management division, which recorded £0.5 billion of net outflows.
The company noted that Wealth Management flows were broadly flat when excluding execution-only activity and a £0.2 billion tax-related outflow linked to measures introduced in the 2024 UK budget.
Revenue rises ahead of market expectations
Operating income increased 9.4% year-on-year to £241 million, slightly exceeding analyst consensus forecasts for the quarter. Total net operating income rose by £20.6 million compared with the previous year to reach £240.7 million.
Growth was primarily driven by higher fee income, which contributed an additional £14.8 million, alongside a £7.1 million increase in net interest income. Other income categories declined by £5.6 million over the same period.
Management’s revenue performance outpaced market expectations despite lower-than-anticipated funds under management and administration levels, indicating that previous consensus margin assumptions may have been overly cautious.
Asset Management division also records outflows
Within the Asset Management business, net flows were negative £0.4 billion excluding intra-group adjustments, or negative £0.3 billion including those adjustments. The Wealth Management division experienced gross outflows totalling £3.2 billion during the quarter.
Total funds under management and administration ended the period at £113.6 billion, approximately 2% below Visible Alpha consensus estimates. Market movements reduced overall asset values by £1.14 billion during the quarter.
More about Rathbones Group
Rathbones Group plc is a UK-based wealth and asset management company providing investment management, financial planning and advisory services to private individuals, charities, trustees and professional intermediaries. The group oversees a broad range of investment strategies and wealth solutions through its Wealth Management and Asset Management divisions across the UK.
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