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Schroders Wealth Arm's Profits Increase In H1 2018

Robbie Lawther

27 July 2018

’ wealth management arm reported a four per cent rise in profit before tax in its first half of 2018 results. It came in at £37.9 million ($50 million) for H1 2018, compared with £36.4 million in 2017.

Wealth management net income rose by eight per cent to £143.8 million (H1 2017: £133.7 million).

The wealth segment’s asset under management and administration increased to £60.1 billion in June 2018 from £57.2 billion in December 2017.

Net inflows for the wealth arm stood at £1.2 billion (H1 2017: £600 million) in the first half of the year, £700 million of which came from clients of Benchmark Capital.

The net operating revenue margin before performance fees was 62 basis points (FY 2017: 61 basis points).

Asset Management
Asset management net income before exceptional items was up by 12 per cent to £921.5 million (H1 2017: £820 million).

Profit before tax increased by 10 per cent to £332.2 million, compared with £301.0 million in H1 2017.

Assets under management for AM decreased in June 2018, which stood at £389.3 billion, compared with £389.8 billion in December 2017.

The net operating revenue margin before performance fees and carried interest was 45 basis points (FY 2017: 45 basis points).

Group
The group’s profit before tax increased by eight per cent to £371.1 million in H1 2018 (H1 2017: £342.8 million).

The board has declared an interim dividend of 35.0 pence per share (interim dividend 2017: 34.0 pence per share).

“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,” said Peter Harrison, group chief executive. “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.”