Schroders posts profit rise of 24% to £800m YoY

Schroders, the British multinational asset management company, posted its annual results this morning and unveiled a headline rise in profit before tax of 24% on 2016.

Pre-tax profits came in at £800.3m, up from £644.7m, while net income before exceptional costs rose 15% YoY, to £2.06m. The solid set of results were widely seen as evidence of a sector riding the crest of a wave, with total net inflows rising by a remarkable nine times on the year, from £1.1bn in 2016 to a stellar £9.6bn over the course of last year.

Additionally, assets under management and administration were up 13% on the year, totaling £447bn, and full-year dividends rose 22% to 113.0 pence per share, up from 93 pence in 2016.

Commenting on the results, Peter Harrison, group CEO, 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 of £447bn.

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.”

Christopher Copper-Ind
Christopher Copper-Ind is Editor of International Investment.

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