15th Jan 2026 08:53
(Alliance News) - Schroders PLC on Thursday said it expects full-year adjusted operating profit to be ahead of market expectations after stronger fee income and tighter cost control lifted performance in 2025.
The London-based financial services firm forecast adjusted operating profit of at least GBP745 million in 2025, up 24% from GBP603.1 million the year prior.
This implies second half adjusted operating profit of around GBP429 million which Citi analyst Nicholas Herman said is 25% ahead of Visible Alpha consensus of GBP343 million.
In response, shares in Schroders rose 8.2% to 451.50 pence each in London on Thursday morning. It was the top performer in the FTSE 100 which was down 0.1%.
Schroders expects adjusted net operating income of at least GBP2.58 billion in 2025, up 5.7% from GBP2.44 billion in 2024.
Management fees benefitted in the fourth quarter from favourable assets under management mix due to strong intermediary net new business, the firm said.
Improved income also reflected higher performance fees and carried interest, and positive market returns, including on seed investments, the Schroders added.
Adjusted operating expenses are expected to be broadly flat on 2024's GBP1.83 billion, demonstrating "good cost discipline and the further accelerated delivery against our transformation targets."
Schroders said it remains committed to its transformation target of GBP150 million annualised net savings by the end of 2027.
As a result, the FTSE 100 listing expects to achieve an adjusted operating cost to income ratio of around 71% in 2025, down from 75% in 2024.
Assets under management rose to about GBP825 billion including joint ventures, up from GBP778.7 billion in 2024, with positive net new business of roughly GBP11 billion.
Public Markets brought in GBP3.9 billion of inflows, while Schroders Capital attracted about GBP4.5 billion, supported by the first contribution from Future Growth Capital.
Wealth Management added GBP3.4 billion, equivalent to a net new business rate of 2.7%, against a backdrop of continued macro-economic and policy uncertainty.
By Jeremy Cutler, Alliance News reporter
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