Liverpool wealth manager Rathbones sees half-year pre-tax profits rocket 120% to £112.1m after £839m takeover of Investec Wealth & Investment. Tony McDonough reports

Rathbones is based at the Port of Liverpool Building. Picture by Tony McDonough

Wealth manager Rathbones has hailed the success of its £839m takeover of Investec Wealth & Investment amid soaring half-year profits.

On Wednesday, Liverpool-based Rathbones revealed its results for the six months to June 30 to the stock exchange. They show a 120% surge in underlying pre-tax profits to £112.1m.

Operating income for the half year came in at £447m, up from £238m for the same period in the previous year, although this was boosted by the merger. However, standalone income was still 12% higher. Funds under management are up 3.4% to £108.9bn.

Rathbones, which is based at the Port of Liverpool Building, was started by the Rathbone family in Liverpool in the 1720s as a timber merchant. It later moved into shipping, overseas trade and financial services.

Investec W&I was the wealth management arm of Investec Group, which was listed on both the London and Johannesburg stock exchanges. Investec has a Liverpool team based at The Plaza in St Paul’s Square.

In September 2023 Rathbones completed the acquisition of Investec’s wealth and investment businesses in the UK and Channel Islands. The deal excluded Investec Bank based in Switzerland and the international wealth arm.

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Speaking after the latest results, Rathbones chief executive Paul Stockton, said: “Rathbones has continued to focus on consolidating its position as the leading UK discretionary wealth manager.

“In the first six months of 2024, Rathbones has surpassed both the strategic and financial objectives we set out upon the announcement of the Investec Wealth & Investment combination.

“We have achieved synergy realisation ahead of target, with run-rate synergies of £20m delivered to the end of June 2024, well ahead of our year one post-combination objective of £15m.”