(Alliance News) - Schroders PLC on Thursday said trading for 2022 had "weathered difficult market conditions", as interim profit fell by 16%.
Shares were up 3.7% at GBP2,832.00 pence each on Thursday morning in London.
For the six months that ended on June 30, the FTSE-100 London-based asset manager said revenue inched up to GBP1.43 billion from GBP1.42 billion, but pretax profit fell 16% to GBP312.8 million from GB[373.9 million.
"Our returns from balance sheet activities were impacted with net losses on financial instruments and other income of GBP35.2 million," Schroders explained. This is compared to net gains of GBP32.6 million a year earlier. It said the first half of 2022 was dominated by "sharp market declines caused by a combination of the war in Ukraine and a shift in the outlook for inflation and interest rates."
More positively, despite the headwinds, the group said operating profit increased 18% to GBP406.9 million from GBP399.6 million a year earlier.
Assets under management ended the period at GBP773.4 billion, up from GBP766.7 billion on December 31, despite sharp falls in equity and bond markets. Schroders said it completed the acquisition of a 75% stake in renewable infrastructure manager Greencoat Capital during the second quarter, which has added GBP7.7 billion of AuM.
Net operating revenue stood at GBP1.18 billion, up 2% compared to GBP1.15 billion the year before, driven by a higher average AuM of GBP779.2 billion, compared to GBP709.1 billion.
Chief Executive Officer Peter Harrison said: "We have built a diversified and resilient business that has weathered difficult market conditions, can fund growth and has put us in an excellent position to serve our clients. Our private assets, wealth and solutions businesses are growing well, reinforcing the value of our strategic focus."
Schroders maintained its interim dividend at 37 pence per share.
Looking ahead, Schroders said it foresees "significant growth opportunities for the business in the US and Europe." It said it remains on course to deliver stated growth targets in private assets, alternatives and wealth management.
By Xindi Wei; xindiwei@alliancenews.com
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Schroders (SDR)