Brewin cites RDR fee move as income jumps in Q2

Brewin Dolphin Holdings announced today (30 July) that its income rose 4.4 per cent in the three months to the end of June 2012 compared to the same period in 2011, jumping to £66.8m .

In its interim management statement, it said recurring income now represents 67 per cent of total income, partly due to the group moving towards a transparent fee-based model in accordance with the incoming Retail Distribution Review.

However, the figure also reflects a significant fall in the volume of trade “in line with the market as a whole”. Volumes were down 26 per cent in the final three months of 2011, 11 per cent in the first quarter and 17 per cent in the three months to June 2012.

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Brewin also highlighted that the value of funds are down 7.1 per cent since the end of September to £7.8bn; discretionary funds under management are up 10.3 per cent to £17.2bn; and total managed funds are also up 4.2 per cent from the end of September 2011 to the end of June 2012 to £25bn.

Furthermore, the group currently has a consolidated capital adequacy surplus of £18.3m and cash balances, excluding client balances, were £55m at the end of June.

The major programme to move on to new systems by September 2013 remains on track and on budget, Brewin said.