View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
  2. Company news
March 3, 2017

Schroders annual pre-tax profit rises 5%

British fund manager Schroders has posted a pre-tax profit of £618.1m for the year ended 31 December 2016, a 5% increase compared to £589m in the prior year.

By Verdict Staff

British fund manager Schroders has posted a pre-tax profit of £618.1m for the year ended 31 December 2016, a 5% increase compared to £589m in the prior year.

The group's profit before tax and exceptional items was £644.7m, a 6% increase from £609.7m a year ago.

The firm's assets under management and administration stood at £397.1bn at the end of 2016, a 27% from £313.5bn last year.

The group reported net new business of £1.1bn during the year, with continued demand from institutional clients that offset outflows from intermediary and wealth management clients.

Wealth Management

Schroders' wealth business recorded net income of £224m for the year ended December 2016, up 8% from £207.2m in 2015.

The division's profit before tax and exceptional items was £66.4m, an 8% rise from £61.3m in the previous year, while profit before tax dropped 7% year-on-year to £56.3m.

Assets under management and administration at the wealth business at the end of 2016 were £50.7bn, a 60% surge from £31.6bn a year ago.

Asset Management

Schroders' asset management arm has posted net income of £1.53bn for the year ended December 2016, up 8% compared to £1.41bn in 2015.

Compared to the prior year, the division’s profit before tax and exceptional items increased 6% to £572.4m while profit before tax rose 5% to £553.9m. The business generated £1.4bn of net new business in 2016.

Schroders group CEO Peter Harrison said: “We delivered good results in 2016, with profit before tax and exceptional items increasing 6% to £644.7 million. Strong investment performance, positive net inflows and strategic acquisitions led to assets under management and administration increasing 27% to £397.1 billion.

“We have made good progress against our strategic objectives and see a number of future growth opportunities. Our diversified business model, a strong financial position and willingness to invest behind the business means we are well placed to take advantage of these opportunities, despite the challenges faced by the industry.”

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International