Profits at the private banking arm of Schroders, the London-listed firm, slid by almost half to £20.1 million (around $30.3 million) in 2009 from £39.7 million in the previous year, hit by provision for doubtful debt, it said today.
Pre-tax profit for the entire firm, which covers sectors such as asset management, rose to £137.5 million from £123.1 million.
Private banking net revenue fell to £97.7 million from £111.3 million in 2008, reflecting reduced fees and commissions, and lower interest income in the low interest rate environment. Core operating expenses fell.
After a £6.3 million doubtful debt provision, profit before tax fell to £20.1 million (2008: £38.2 million).
“Our private banking business is positioned for growth, with a strong client service proposition and investment culture, an efficient operating platform and a recognised brand,” the firm said in its statement.
Net new business in 2009 amounted to £500 million, up from £400 million in 2008, while funds under management ended the year at £12.6 billion, up from £11.7 billion in the previous year.