Schroders’ private banking division has reported a pre-tax profit before exceptional items of £10.6 million (US$16.4 million) for the six months period ended 30 June, an increase of 1.92% from £10.4 million a year ago.
The division’s net revenues for the first half of 2013 rose 1.71% to £53.5 million from £52.6 million in the corresponding half of 2012.
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Although the private banking division generated positive net business flows, withdrawals from continuing client relationships led to net outflows of £0.3 billion in the first half.
Assets under management in private banking division at the end of June were £16.9 billion, compared to £16.3 billion at the end of December 2012.
"The addition of Cazenove Capital’s wealth management business materially increases the scale of our private banking business in the UK and extends our offering for private clients," Schroders said in a statement.
Asset management division net revenue increased 19% to £585.7 million in the first half from £491 million a year ago. Performance fees rose to £11.8 million from £10.1 million a year ago.
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By GlobalDataNet inflows in Institutional were £2.1 billion across multi-asset, equities and fixed income, with a strong result in Asia Pacific. Assets under management in Institutional at the end of June were £139.6 billion compared to £123.7 billion at the end of December 2012.
Net inflows in Intermediary were £2.7 billion with high levels of net inflows in branded funds offsetting net outflows in the company’s lower margin sub-advisory business. Assets under management in Intermediary at the end of June were £79.2 billion against £72.0 billion six months ago.
Overall, Schroders’ first-half pre-tax profit improved to £221.7 million from £177.4 million a year ago. Profit for the period was £174.2 million or 62 pence per share, compared to £137.1 million or 49.2 pence per share, last year.
