Schroders’ wealth management unit posted pre-tax profit of £30.1m, a 21% decrease from last year.
The division’s net income was £144m for the first half of 2019, compared to £143.8m a year ago.
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Assets under management in wealth management were up, however. As of 30 June 2019 the division managed £50.7bn versus £43.7bn at the end of 2018.
Schroders Asset Management
The firm’s asset management arm registered net income before exceptional items of £864.6m in the first half of 2019, a 6% drop from £921.5m in the previous year.
Pre-tax profit at the unit in the first six months of 2019 was £284.4m, a 14% decline on a year-on-year basis.
The division’s assets under management at the end of June 2019 reached £393.7bn, compared to £363.5bn as of 31 December 2018.
Schroders Group profit
At group level, Schroders reported a pre-tax profit of £319.3m for the first half of 2019, a fall of 14% from £371.1m a year earlier.
Profit before tax and exceptional items dropped 14% to £340.4m from £397.1m.
The first half of 2019 posted net outflows of £1.2bn, as against inflows of the same figure a year ago.
However, the firm’s total assets under management at the end of June 2019 were £444.4bn, a 9% rise from £407.2bn at the end of December 2018.
Schroders group CEO Peter Harrison said: “We have continued to follow our strategy of selectively investing in key areas to drive the long-term growth of the business through a combination of inorganic investments and organic hiring.
“Assets under management finished the period at a new high of £444.4 billion. The overall pipeline of notified net new inflows is strong.”
