Rathbone Share News (RAT)

(Sharecast News) - Wealth manager Rathbones said annual profits more than doubled, boosted by a rise in funds under management.

The company on Thursday said pre-tax profit for the year to December 31 rose to £95m, up 116%. On an underlying basis, earnings were up by more than a third to £120.7m.

Total funds under management and administration (FUMA) at the group totalled £68.2bn at the end of 2021, up 24.7% year on year.

Investment management funds rose to £50.3bn from £44.9bn. An extra £4.9bn was taken in after the acquisition of wealth manager Saunderson House last October.

Net interest income in 2022 was expected to increase as a result of recent Bank of England base rate rises and those anticipated in the remainder of 2022.

The board recommended a final dividend of 54p for, making a total of 81p for the year, an increase of 12.5% on 2020.

Rathbones said it was expecting to spend an additional of £40m on its digital strategy over the next two years.

"At market levels consistent with conditions at 31 December 2021, we plan to manage this investment within existing underlying operating margin guidance of mid-20%s in 2022 and 2023 with a view to returning to 27-30% from 2024 onwards," the company said.