Schroders interim pre-tax profit, AuM rise

Schroders reported a rise in first-half pre-tax profit on Thursday as assets under administration and net inflows edged higher and the asset manager lifted its interim dividend by 3%.

In the six months to 30 June, pre-tax profit increased 8% to £371.1m, while assets under management and administration were up £1.2bn to £449.4bn and net inflows pushed up to £1.2bn from £0.8bn in the same period a year ago.

Net income before exceptional items in the asset management division was up 12% to £921.5m, while pre-tax profit increased 10% to £332.2m. There was no net new business in the first half, as inflows from institutional clients were offset by outflows in the intermediary sales channel.

In the wealth management segment, net income was up 8% to £143.8m, including performance fees of £0.3m versus £0.6m the year before. Pre-tax profit for the division was 4% higher at £37.9m.

The company upped its interim dividend to 35p a share from 34p in the first half of 2017.

Schroders said the first half of 2018 saw continued industry headwinds. However, it continues to see growth opportunities, including in some of the key strategic areas where it has been investing for the future.

Chief executive Peter Harrison said: "Against a challenging backdrop we have delivered robust revenue growth through our strategy of focusing on new markets and by continuing to evolve our products and solutions.

"Our diversified business model has again proven its worth. Wealth management has seen strong client demand and we have continued to expand our capabilities within private assets and alternatives, offsetting industry headwinds in other areas. We remain confident that we can generate growth through the cycle and that we are well placed to continue to create value for our clients and shareholders over the long term."