Rathbones lifts Q1 income despite continued client outflows

Rathbones Group PLC ( (GB:RAT) ) just unveiled an update.

Rathbones Group PLC reported a 9.4% rise in first-quarter operating income to £240.7 million, driven by higher fees, commissions and net interest income amid improved market levels compared with a year earlier. Funds under management and administration slipped to £113.6 billion from £115.6 billion at year-end, as net outflows of £0.8 billion offset market performance, with group outflows mirroring the prior-year quarter.

Wealth Management saw net outflows of £0.4 billion, including £0.2 billion from low-margin execution-only services, but underlying wealth flows excluding those services were broadly flat despite volatile markets and an estimated £0.2 billion of tax-driven withdrawals following the October 2024 Budget. Asset Management also recorded £0.4 billion of net outflows, particularly in single-strategy funds, underscoring continued pressure in UK retail active asset management even as Rathbones’ management emphasised disciplined strategy execution and its ambition to become the UK’s leading wealth manager.

The most recent analyst rating on (GB:RAT) stock is a Buy with a £2400.00 price target. To see the full list of analyst forecasts on Rathbones Group PLC stock, see the GB:RAT Stock Forecast page.

Spark’s Take on RAT Stock

According to Spark, TipRanks’ AI Analyst, RAT is a Outperform.

The score is driven primarily by solid financial performance (improving profitability and low leverage) tempered by volatile cash-flow history. Earnings call factors are supportive due to synergy outperformance and clear margin improvement guidance, while technicals are mixed with near-term softness. Valuation is balanced: an attractive dividend yield offsets a mid-to-higher P/E.

To see Spark’s full report on RAT stock, click here.

More about Rathbones Group PLC

Rathbones Group PLC is a FTSE 250 wealth and investment management group providing discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services to private clients, charities, trustees and professional partners. The firm manages £113.6 billion in client assets, including £15.7 billion at Rathbones Asset Management Limited, and employs more than 3,300 staff across 21 offices in the UK and Channel Islands, with over 700 investment managers and financial planners delivering personalised wealth solutions.

The group positions itself as one of the UK’s leading wealth managers, focusing on high-quality, bespoke services rather than mass-market offerings, and aims to consolidate its standing as the country’s pre-eminent wealth manager. Its broad service range and multi-channel presence support a diversified revenue base across wealth management and asset management, providing exposure to both advisory and discretionary mandates as well as multi-asset and single-strategy funds.

Average Trading Volume: 92,946

Technical Sentiment Signal: Buy

Current Market Cap: £2.04B

For detailed information about RAT stock, go to TipRanks’ Stock Analysis page.