Private banking arm drags down Schroders profits for 2012

Schroders has revealed its pre-tax profits fell 11% over the year to 31 December 2012, largely due to a slump in profits in the private banking arm.

Profits in this division halved over between 2011 and 2012, while the asset management arm saw a less dramatic fall in profits from £389.4m to £348.5m. However, the firm saw net inflows triple from £3.2bn in 2011 to £9.4bn in 2012. Assets under management increased from £187.3bn to a record £212bn over the period. The group’s full-year dividend will be 43p per share for the year, an increase of 4p. Asset management net revenue declined 3% to just over £1bn in 2012, including performance fees of £28.4m. The group said it has seen four quarters of positive net inflows, especially ...