20th Oct 2016 07:01
LONDON (Alliance News) - Rathbone Brothers PLC said Wednesday strong investment markets boosted its funds under management in the third quarter as it unveiled plans for a share placing to mitigate its pension scheme deficit.
The private bank reported its total funds under management grew by 8.5% to GBP33.2 billion at September 30 from GBP30.6 billion at June 30. Net operating income was GBP65.9 million for the three months, a 19% increase from GBP55.6 million the year prior.
Rathbone Brothers said net organic inflows for the period were GBP200 million, broadly the same as the year prior, representing an underlying annualised growth rate of 3.0% for the third quarter.
Rathbone Brothers also unveiled on Wednesday plans for a GBP38.0 million share placing in order to mitigate the deficit in its defined pension benefit schemes. The deficit rose to GBP58.3 million over the third quarter from GBP32.0 million at June 30.
The bank will issue approximately 2.2 million shares at a price of 1,710 pence each to institutional investors, representing a 4.6% increase in the bank's issued share capital. Rathbone shares closed at 1,765.00p on Wednesday.
The placing shares are expected to be admitted to the London Stock Exchange on or before October 25.
Rathbone Brothers said the measure is expected to generate a higher regulatory capital requirement in the near-term but reduce the rate of growth of regulatory capital needed to support the pension schemes. The bank also said it is now consulting over plans to cap pensionable salaries and close its defined benefit pension scheme to future service accrual with effect from July 2017.
By Adam Clark; [email protected]
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