Schroders reports increase in third quarter pre-tax profit

6th Nov 2014 08:15

Schroders reported an increase in third quarter pre-tax profit as the asset management company secured new business.Profit before tax and exceptional items in the three months to 30 September was £119.7m, up from £109.6m the previous year, as asset management net revenue rose to £329.5m from £315m.Net inflows came to £2.1bn, comprising £1.3bn in intermediary and £0.8bn in institutional, taking net inflows for the nine months to £6.6bn.Wealth management net revenue climbed to £61.7m from £47m, including performance fees of £2.7m and the release of a £7.5m loan loss provision.Chief executive Michael Dobson said the group achieved strong results despite the adverse impact on profit of £27m due to the strength of the sterling."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 said. "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."