In its interim management statement for the nine months to 30 September, the group said that the latest quarter’s numbers saw profit before tax and exceptional items for the nine months grow to £404.4m, 16% higher than the comparable period in 2013.
During the period, net revenues from its wealth management division were £61.7m, up from £47m in Q3 2013, boosted by net inflows of £100m. For the first nine months of the year, profit before tax within the division came in at £49.2m, more than double the figure reported in 2013.
Asset management also reported a growth in profits during the quarter to £119.7m on revenues of £329.5m. This was up from £109.6m in 2013, on revenues of £315m.
On the asset management side, the firm reported £1.3bn in net inflows into its intermediary channel in the quarter, and £800m into its institutional channel.
Schroders CEO, Michael Dobson, said: "We have won net new business of £7bn in the first nine months of the year and have continued to generate net inflows across all channels in October, despite market volatility.
He added: “Inflows in intermediary have been strong in Continental Europe and Asia-Pacific, particularly in income products across a number of different asset classes. In institutional, we have a significant pipeline of business won but which has not yet been funded."
According to Numis Securities’ David McCann the numbers beat both its expectations and market consensus, largely as a result of the £7.5m release of a loan provision announced by the group, and an “unexpected/unusual performance fee within the private bank of £2.7m."
“Excluding these items, profit before tax would have been c.£132.7m, -2% vs. our estimate and +1% vs. consensus,” he wrote in a note out on Thursday.
“If we had to own one stock in the sector on a five year plus view (and were not allowed to change our selection during that time), it would be Schroders because we believe it is well run, it is by far the most diversified business in the sector and downside protection from the balance sheet.,” he added.
