Interim Management Statement

31 July 2013

Brewin Dolphin Holdings PLC

Interim Management Statement

Quarter ended 30 June 2013

This Interim Management Statement ("IMS") is issued by Brewin Dolphin Holdings PLC as required by the UK Listing Authority's Disclosure and Transparency rules. It covers the period from 1 April 2013 to 30 July 2013 and includes trading results for the quarter ended 30 June 2013.

The Group recorded a good performance in the third quarter to 30 June 2013. Core fee and commission income of £63.8m was 27% higher than the same period last year (2012: £50.3m) and total income at £73.3m increased by 14% (2012: £64.5m). Other income fell primarily as a result of the on-going planned reduction in "trail income" post Retail Distribution Review (RDR).

1 the June 2012 fee income has been adjusted to exclude shared revenue which prior to the Retail Distribution Review was recorded as income for Brewin Dolphin with a corresponding operating expense apportioning the income to external parties.

Year to date total income for the nine months ended 30 June 2013 was £212.3m, an increase of 11% over the same period last year (2012: £191.6m), with core fee and commission income of £182.3m, 21% higher (2012: £150.1m).

The Group has made further progress during the quarter on the move to standard national pricing which ensures clients are charged consistent and transparent rates for all services. As previously indicated, this initiative will be substantially complete by the end of the financial year. There has been an anticipated increase in the rate of outflows from advisory services totalling £0.4bn in the quarter. There will be a limited impact on income from this attrition as average fees and commissions for these accounts were low.

The Group's discretionary investment management service continued to attract net inflows in the quarter (+£0.2bn) with net inflows of £0.7bn for the nine months to 30 June 2013 representing an annualised growth rate of 5%. This increase is consistent with the Group's strategy of concentrating future growth on discretionary investment management services.

Overall funds under management (FUM) declined by 2.1% in the quarter to 30 June 2013, in part due to the first quarterly decline in equity markets since the quarter ended 30 June 2012 (APCIMS Balanced Index declined by 2.1% from 30 March to 30 June 2013).

Funds under management

3 months to 30 June 2013

9 months to 30 June 2013

# APCIMS Balanced Index

During the quarter, the Group successfully raised £38.6m net via a placing in order to increase capital levels, fund further investment in growing the business and improve its efficiency. As announced at the time of the placing the additional investment capital will help to accelerate delivery of margin expansion to the revised target of >25% operating margin run rate in 2016.

Since the placing, plans to deliver improved efficiency and further growth have progressed. Existing initiatives continued in the quarter to lower operational costs through better cost discipline and the implementation phase of new systems is underway as planned.

The Group's regulatory capital surplus increased significantly during the quarter to a solvency ratio of over 200%, principally as a result of the additional equity capital raised via the placing in May.

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Notes for editors