Acquisitions and cost discipline drive profits up at Schroders plc

Multinational asset management firm Schroders plc has achieved double-digit profit growth.

The London-headquartered company said underlying organic growth, selective acquisitions and rigorous cost discipline drove its pre-tax profit up 23% to £760.2m in 2017.

Among its acquisitions last year was a swoop for Adveq, a Swiss private equity firm, which expanded Schroders’ capabilities in private assets.

The company’s net income for the year stood at £2.06bn, a 15% increase against the £1.79bn recorded in 2016.

Schroders’ operating expenses rose slightly during the period, climbing from £1.14bn to £1.26bn.

Group chief executive Peter Harrison said: “Schroders has again delivered strong results in 2017, with our diversified business model and client-centric approach generating growth across the group.

“Underlying organic growth and selective acquisitions combined with rigorous cost discipline led to a 24% increase in pre-exceptional profit. Assets under management and administration rose to a new high of £447bn.”

He continued: “Focusing on the longer term, we have continued to see good progress in a number of key strategic areas, with the expansion of our investment capabilities in private assets, an improvement in wealth management and strong underlying momentum in North America.

“There are headwinds facing the industry but we continue to believe that there remain opportunities for growth. Our diversified business model, ongoing focus on costs, strong financial position and willingness to invest mean that we continue to be well placed.”