StockMarketWire.com - Schroders has reported a 23% increase in profit before tax to £760.2 million for 2017.

The company said this was driven by underlying organic growth and selective acquisitions combined with rigorous cost discipline.

Net operating revenue increased by 17% to £2,010.2 million and net income before exceptional items rose by 15% to £2,068.9 million, driven by higher assets under management and administration (AUMA) and performance fees.

The ratio of total costs to net income reduced by three percentage points to 61%.

At 31 December 2017 AUMA was £447.0 billion, a 13% increase from the prior year end. This was driven by strong investment performance, acquisitions and net new business from clients of £9.6 billion, which generates around £63 million of annualised net new revenue.

Weakness in sterling in the first half of the year, compared to 2016, contributed positively to profit before tax and exceptional items by around £27 million. However, as sterling strengthened in the second half, the impact at 31 December 2017 was to reduce assets under management (AUM) by around £12 billion.

Peter Harrison, group chief executive, said: "Schroders has again delivered strong results in 2017, with our diversified business model and client-centric approach generating growth across the Group. Underlying organic growth and selective acquisitions combined with rigorous cost discipline led to a 24% increase in pre-exceptional profit. Assets under management and administration rose to a new high of £447 billion.

"Focusing on the longer term, we have continued to see good progress in a number of key strategic areas, with the expansion of our investment capabilities in private assets, an improvement in Wealth Management and strong underlying momentum in North America.

"There are headwinds facing the industry but we continue to believe that there remain opportunities for growth. Our diversified business model, ongoing focus on costs, strong financial position and willingness to invest mean that we continue to be well placed."


At 8:58am: [LON:SDR] Schroders PLC share price was +94.5p at 3543.5p



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