Schroders has reported a ‘good start to 2017’, with the company’s diversified business model “performing well and continuing to generate ongoing growth”.
According to the company’s unaudited half-year results for the six months to June 2017, net operating revenues increased by 18 per cent to GBP940.1 million (H1 2016: GBP794.9 million) and profit before tax and exceptional items rose 23 per cent to GBP361.5 million (H1 2016: GBP293.7 million).
This reflects our ability to deliver revenue growth with cost discipline, resulting in the total cost ratio improving to 62.9 per cent (H1 2016: 64.8 per cent).
We generated net new business of GBP0.8 billion (H1 2016: GBP1.0 billion) in the first six months of the year. There was positive net new business from Institutional and Wealth Management clients, as well as a return to positive net flows within Intermediary branded funds, partially offset by outflows in Intermediary sub-advised.
Assets under management and administration ended the period at a new high of GBP418.2 billion (30 June 2016: GBP343.8 billion).
Peter Harrison, Group Chief Executive, says: “We have delivered another set of good results, with profit before tax and exceptional items increasing 23 per cent to GBP361.5 million. Assets under management and administration have reached a new high of GBP418.2 billion. Underlying progress in all regions was encouraging and we are building out our capabilities in Private Assets. We are confident in our ability to continue identifying, and investing in, areas of future growth.
“Markets have remained buoyant in the first half of the year, but we remain cognisant that these trends can be volatile and that market returns are difficult to predict. Our diversified business model has proven that it is well placed to adapt to the changing landscape and to continue to create value for clients and shareholders over the long term.”
