Schroders recovers from subpar results in their recent performance.
Schroders Steps Ahead in Transformation Plan, Maintains Steady Financial Performance
Asset management giant Schroders has made significant strides in its three-year transformation plan, with the firm achieving £21 million in cost reductions in the first half of 2025 alone. The company aims to deliver £150 million in cost savings by the end of 2027, with total transformation costs expected to be around £200 million.
In the first half of 2025, Schroders reported broadly flat Assets under Management (AUM) at approximately £776.6 billion. Despite a slight net decline of just under £2 billion due to foreign exchange headwinds, particularly from a weaker US dollar, positive market movements and investment performance provided a £24 billion uplift.
The wealth management arm of Schroders delivered £1.6 billion of net new business, meeting its annual 5-7% target. The increase in wealth management net operating revenue was due to improved efficiencies and reduced-third party costs, driven by acquisitions.
In the asset management arm, the public market business in global equities showed strong performance. Performance fees and net carried interest rose to £20.7 million.
Schroders' net operating income for the firm's asset management arm increased to £940.2 million, an improvement from £934.9 million the previous year. Net operating revenue in the wealth management arm increased 9% to £258.3 million. Adjusted operating profit rose by 7 per cent from £294.1 million to £316 million. Overall net operating revenue increased to £1.2 billion.
The company has exited its real estate business in Munich and private credit business in Australia. Schroders also restructured its businesses in South Korea and China.
Despite one-off costs related to transformation and restructuring, Schroders' adjusted operating profit rose 7.4% year-on-year to £316.0 million. However, statutory profit before tax fell from £276.3 million to £196.9 million.
Schroders' AUM remained stable at £776.6bn. Gross inflows increased by 8 per cent to £68.2 billion. The wealth management arm's Assets Under Management (AUM) increased to £145 billion.
The Board will not alter the interim dividend, which remains at 6.5p per share. Acquisition Benchmark contributed a third of the wealth management arm's net flows.
Schroders has rallied from a poor first quarter, demonstrating the firm's resilience and commitment to delivering on its transformation plan. Management emphasizes disciplined execution of the plan, with a clear strategy to create a high-performing and resilient business positioned for profitable growth. The focus remains on delivering the cost savings target by 2027 while driving growth in areas where Schroders has a competitive edge.
[1] Schroders Press Release, 2025. [2] Schroders Annual Report, 2024. [3] Schroders Half-Year Results, 2025. [4] Schroders Interim Management Statement, 2025. [5] Schroders Transformation Plan Update, 2025.
During the first half of 2025, Schroders reported a steady financial performance across its business sectors, with cost reductions amounting to £21 million, and plans to achieve £150 million in savings by the end of 2027. The company's transformation strategy is focused on creating a resilient business, with a particular aim to deliver growth in markets where Schroders maintains a competitive edge in finance and business.
