Schroders delivers a 'strong set of numbers', says Credit Suisse

6th Mar 2014 11:31

Credit Suisse has maintained a 'neutral' rating and 2,810p target price for asset management firm Schroders but admitted that the company delivered a 'strong set of numbers' with its 2013 results on Thursday.The bank highlighted that the stock is currently trading at a price-to-earnings ratio of 15, a premium to the wider sector on a multiple of 13.Schroders reported that profit before tax and exceptional items totalled £507.8m last year, up 41% from 2012, "which was 7% ahead of consensus expectations [£473.9m] with the beat due to better revenues [...] and lower costs".Net revenues were up 24% at £1,407.6m, compared with the consensus forecast of £1,385m, helped by asset management performance fees which surged from £29m to £80m.Assets under management also rose 24% during the year to £262.9bn, broadly in line with consensus estimates, the bank said. Net inflows during the fourth quarter totalled £2.4bn, better than the £1.9bn the market was expecting. Meanwhile, the total dividend per share was increased by 35% to 58p, compared with the consensus forecast of 52p.The stock was 4.1% higher at 2,697p by 12:34.BC