Rathbones profits jump as Investec Wealth merger completes

(Sharecast News) - Rathbones - now the UK's largest discretionary wealth manager after it bought Investec's wealth management arm last year - posted a jump in full-year profit on Friday and struck an upbeat note on the outlook. In the year to the end of December 2025, statutory pre-tax profit rose 53.5% to £152.9m, benefitting from better-than-expected synergy delivery, a sharp reduction in integration costs and higher funds under management and administration (FUMA).

Underlying pre-tax profit was 4.6% higher at £238.1m and FUMA rose to £115.6bn from £109.2bn at the end of 2024, despite a "difficult" first half.

The wealth manager said it delivered cost and revenue synergies well ahead of its original £60m target, with run-rate synergy realisation of £76m at the end of 2025. "We consider 2025 to mark the end of the period of synergy delivery related to the integration," it said.

Rathbones announced a final dividend of 68p per share for 2025, up from 63p a year earlier and taking the total dividend for the year to 99p, up from 93p.

The company also said it was extending the £50m share buyback that completed earlier in February by up to £20m, subject to regulatory approval.

Chief executive Jonathan Sorrell said: "Following the combination with Investec Wealth & Investment (IW&I), we have continued to build a stronger organisation. Our enhanced scale strengthens our ability to invest in ways that differentiate us: in our investment process, in our client proposition, in our people, and in our technology.

"We are creating a more capable organisation with a clear purpose: to help more people invest their money well, so they can live well. In pursuit of this purpose, our aspiration is to be 'the best wealth manager in the UK, by far' and we have aligned our strategy accordingly. Our goals are for Rathbones to be the first choice for clients, the first choice for talent, the most effective operator and the most reputable brand."

At 0810 GMT, the shares were up 9% at 2,410p.

Jonathan Sorrell, group chief executive, said the group is "competing from a position of real strength" and is now aspiring "to be 'the best wealth manager in the UK by far'".