Financial Results

Private Banking Profits Fall At Schroders, But Group Results Up Strongly

Tom Burroughes Group Editor London 5 August 2010

Private Banking Profits Fall At Schroders, But Group Results Up Strongly

Schroders, the private banking and investment firm, said today its profit before tax and exceptional items for the first six months of 2010 surged to £188.2 million ($298 million) from £36.3 million a year before, while funds under management rose to £164 billion from £148.4 billion at the end of 2009.

Private banking profits before tax and exceptional items, however, fell sharply, to £6.6 from £14.9 million. The rise in overall group profits was largely accounted for by a large rise in asset management profit, to £177.3 million, from £66.3 million in the same six months of 2009.

Private banking net revenue was flat year-on-year at £49.9 million (H1 2009: £49.2 million), with higher management fee income offset by a reduction in interest income. Costs were higher due to an addition of people in frontline, business generating roles, the firm said. The profit figure was affected by £4.7 million of doubtful debt provisions, most of which were taken in the first quarter.

Private banking logged net inflows of £1.2 billion in the first half. Private banking funds under management at the end of June were £14.0 billion, up from £12.6 billion at the end of last year.

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