STJ: New reporting same net-profit

Research evidence excerpt

STJ: New reporting same net-profit

lated, and other. Other is further broken

out into people, performance, and regulatory costs.

• Gestation FUM (essentially non-fee-earning assets that become revenue-generating over 6 years) will no longer be reported,

which could complicate assessment of the drivers of adj IFRS PAT growth as the gestation FUM matures.

What's stayed the same?

• Headline earnings unchanged: The pro-forma FY25 adj IFRS profit after tax is identical to the FY25 underlying cash result.

• 70% pay-out ratio for shareholder returns continues to apply to the new adj IFRS PAT figure.

• Long-term guide: Ambition to double profits from 2023 to 2030 continues to apply. We note consensus is already well ahead of

this figure at £877m (2.2x 2023), and the slides state "no change expected to consensus profit expectations".

• Guidance based on "Profit from FUM": The company will continue guiding on a profit rather than revenue margin basis (which

is different to most peers). New guidance for profit from FUM margin at 47-49bps in FY26, and expanding by 3bps through to

2031 as gestation FUM matures.

How do we expect the market to react?

The market should be reassured both by the alignment of pro-forma FY25 profit metrics to those previously reported, and by the

fact the company expects no change to consensus expectations.

What next?

• The group has made a webcast available with details on the changes here.

• A live Q&A session will take place at 16:30 London time, register here.

All values in GBp unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).

Disseminated: Jun 18, 2026 03:28EDT; Produced: Jun 18, 2026 03:28EDT

For Required Non-U.S. Analyst and Conflicts Disclosures, see page 3