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Schroders profit rises 23% as AuM, net inflows swell
Asset manager Schroders posted a 23% jump in full-year pre-tax profit on Thursday as assets under management and net inflows rose amid growth across the group.
In the year to the end of December 2017, pre-tax profit increased to £760.2m from £618.1m in 2016, while profit before tax and exceptional items pushed up to £800.3m from £644.7m. Assets under management and administration rose 13% to £447bn and net inflows came in at £9.6bn, up from £1.1bn. The company lifted its full-year dividend by 22% to 113p per share.
In the asset management division, pre-tax profit was up 24% to £688.7m, while assets under management were £389.8bn versus £346.4bn the year before. Meanwhile, in the wealth management business, pre-tax profit rose 20% to £67.4m while AuM increased to £45.9bn from £39.6bn the year before.
Group chief executive Peter Harrison said: "Schroders has again delivered strong results in 2017, with our diversified business model and client-centric approach generating growth across the group. Underlying organic growth and selective acquisitions combined with rigorous cost discipline led to a 24% increase in pre-exceptional profit. Assets under management and administration rose to a new high.
"Focusing on the longer term, we have continued to see good progress in a number of key strategic areas, with the expansion of our investment capabilities in private assets, an improvement in wealth management and strong underlying momentum in North America.
"There are headwinds facing the industry but we continue to believe that there remain opportunities for growth. Our diversified business model, ongoing focus on costs, strong financial position and willingness to invest mean that we continue to be well placed."