Rathbones Group Increases Net Interest Income Guidance for 2023

Rathbones Group, a leading wealth-management company, has announced an upward revision of its net interest income guidance for 2023. The company now expects the net interest income to reach around £45 million, supported by larger-than-expected base rate rises. This is an increase from its previous guidance of £35 million.

First Half Performance

For the first half of the year, Rathbones Group reported a fall in pretax profit. The company posted a pretax profit of £26.0 million for the six months ended June 30, compared to £32.6 million during the same period last year. This decrease can be attributed to the costs associated with its combination with Investec Wealth & Investment's U.K. business, amounting to £11.2 million.

Transaction Completion and Outlook

Rathbones Group expects the completion of its transaction with Investec Wealth & Investment's U.K. business to notably improve medium-term underlying operating profit margins to at least 30%. The company anticipates the transaction to close towards the end of the third quarter.

Operating Income and Funds Under Management

During the first half of the year, Rathbones Group reported an increase in operating income. The company's operating income rose to £238.0 million, up from £231.9 million in the previous year's corresponding period. The rise in operating income can be attributed to higher interest income, which partially offset lower fee and commission income.

Rathbones Group closed the period with total funds under management and administration of £60.53 billion, compared to £60.23 billion six months prior.

Interim Dividend

The company has proposed an interim dividend of 29 pence per share, representing an increase from the previous year's 28 pence per share.