Rothschild UK investment bank reports lower profit as bonuses outpace deal fee growth

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Rothschild UK profit and bonuses

Highlights

NM Rothschild & Sons reports an 18 per cent drop in pre-tax profit to £84.9mn in 2025 as 12 per cent higher expenses outpace revenue gains.
Global advisory fees at the UK arm rise 8 per cent to £456.7mn, but staff costs climb nearly 10 per cent to £364.1mn, raising average pay per employee to about £312,000.
Strong M&A activity supports mandates including the £5.3bn Royal Mail acquisition and Spectris’ £4.8bn takeover, with deal momentum expected to extend into early 2026 despite market volatility.

2025 results reflect rising pay costs

As reported by Financial Times, citing Companies House filings, NM Rothschild & Sons, the UK investment banking arm of Rothschild & Co, reports an 18 per cent drop in pre-tax profit to £84.9mn in 2025 despite higher revenue. Global advisory fees at the British arm rise 8 per cent to £456.7mn, but a 12 per cent increase in expenses outweighs that gain.

The bank attributes the rise in costs to higher variable compensation, saying this is largely due to strong revenue performance. Staff costs at the UK investment bank climb almost a tenth to £364.1mn, while fixed and variable remuneration totals £294.9mn during the period.

NM Rothschild employs 945 staff on average during 2025, implying average pay per employee of about £312,000, including bonuses. The group says its remuneration package includes deferred bonuses, which are typically paid up to three years after award if bankers remain employed by Rothschild.

Dealmaking recovery supports mandates and outlook

The figures underline how the long-awaited M&A recovery begins to support revenues across the sector while intensifying competition for dealmakers. Boutique advisers including Rothschild, Centerview and Evercore strengthen their position in the UK market, competing with larger Wall Street and City of London rivals on some of the country’s biggest transactions.

NM Rothschild advises on the £5.3bn acquisition of Royal Mail by Czech billionaire Daniel Kretinsky, which completes in 2025, and also represents Spectris in its £4.8bn takeover by U.S. private equity firm KKR last year. The transactions follow a prolonged period in which UK dealmaking is held back by higher interest rates and economic uncertainty.

In its annual report, the bank says it expects the dealmaking momentum seen during the second half of last year to continue into the first six months of 2026. Rothschild’s mandates this year include acting as lead financial adviser to Associated British Foods on its plan to demerge Primark from its food business after 65 years, while wider markets remain unsettled as the U.S.-Iran war creates volatility and AI threatens to disrupt business models.

In our earlier coverage of the escalating U.S.–Iran military exchanges, we explained how the conflict pushed Brent crude higher and increased volatility across energy markets. We also noted that talk of renewed pressure on shipping through the Strait of Hormuz, including a proposed cargo fee and blockade rhetoric, heightened fears of supply disruption and kept risk sentiment on edge.

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