Rathbones Group PLC (LSE:RAT, OTC:RTBBF) reported a 7% increase in funds under management and administration to £121.1 billion as its core wealth management business delivered a second consecutive quarter of net inflows.
The wealth and investment manager said third-quarter operating income increased 3% to £244 million, taking income for the first nine months of 2026 to £731 million, up 7% year on year.
Wealth Management generated net inflows of £24 million during the quarter, compared with £300 million of outflows a year earlier, despite restrictions on accepting money from some clients subject to enhanced due diligence checks.
Net Wealth Management flows remained positive at £11 million for the first nine months, improving from £800 million of outflows in the same period last year, while excluding lower-margin execution-only services, the business attracted £300 million.
Asset Management remained under pressure, recording £425 million of third-quarter outflows as UK retail investors continued to withdraw money from actively managed equity funds, leaving the group with overall net outflows of £401 million.
Rathbones said its regulatory remediation programme remained on track and expects to begin progressively lifting restrictions on existing enhanced due diligence clients during the fourth quarter.
The group still expects the programme to cost around £60 million through to mid-2028, net of anticipated insurance recoveries.
Separately, subsidiary Vision Independent Financial Planning has received a regulatory review notice from the Financial Conduct Authority, with Rathbones providing £2.5 million for associated costs and expecting Vision’s annual pre-tax contribution to fall by around £4 million from 2027.
Rathbones maintained its target for an underlying operating margin of 29% in the fourth quarter, supported by cost efficiencies and the planned rollout of Salesforce across its client management operations.
Chief executive Jonathan Sorrell said improving flows and progress across the group’s strategic initiatives left Rathbones encouraged by the momentum in the business.
