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Schroders Sees 23% Profit Jump in 2025 on Cost Cuts

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Schroders anticipates a substantial 23% surge in its 2025 profit, projecting at least £745 million, up from £603.1 million the previous year. This positive outlook stems from increased income and cost-cutting measures. The asset manager's adjusted net operating income is also expected to reach at least £2.58 billion, indicating strong financial performance.

This growth reflects the firm's focus on operational efficiency and its ongoing transformation plan. Schroders aims to achieve £150 million in annual savings by the end of 2027. The improved performance is also aided by higher fees and positive market returns, which is typical for asset management firms. They are trying to weather market volatility.

Group assets under management are estimated to rise to approximately £825 billion. Strong performance in various segments, including Public Markets and Schroders Capital, contributed to this growth, with positive net new business. Wealth Management also demonstrated solid performance, despite macroeconomic uncertainties.

Looking ahead, investors will be watching closely to see if Schroders can sustain this momentum. The company's ability to manage costs while attracting new business will be key. Industry analysts will also be keen to see the firm's progress towards its transformation goals and how it navigates market volatility.