St. James's Place (STJ) Status update summary

Introduction of new reporting framework

• Announced a new, simplified financial reporting framework to be implemented from Half Year 2026, aiming for greater clarity, transparency, and alignment with the business model and IFRS standards.

• No changes to the business model, anticipated profitability, financial ambitions, or shareholder returns guidance.

• The key profit metric is renamed from 'Underlying cash result' to 'adjusted IFRS profit after tax', with no change to its calculation or underlying number.

• The new framework will be implemented from Half Year 2026 results.

Key changes in reporting metrics and presentation

• Adjusted IFRS profit and loss account will replace the current cash result, showing income and expenses separately before tax, consistent with IFRS requirements.

• Disclosures in the Financial Review are rationalised, with some tables and balance sheet items moved to the databook.

• New disclosures enhance clarity on profitability drivers, including funds under management and new business inflows.

• Reconciling items between adjusted IFRS and pure IFRS remain unchanged from previous reporting, with reconciliations provided in the notes to the accounts.

• Share-based compensation continues to be excluded from adjusted figures, consistent with prior treatment.

Impact on financial metrics and guidance

• No material change expected to consensus profit expectations; only the presentation of results is changing.

• Profitability is primarily driven by client charges less expenses, with profit from FUM expected at 47–49 bps of average total FUM for 2026 and a suggested 3 bps annual increase to 2031.

• People, property, and technology costs are expected to grow by 5% in 2026.

• Performance-related costs will increase in line with other costs, with year-on-year variation.

• Charge structure implementation costs will be nil from 2026 onwards.