Schroders (SDR) H1 2025 earnings summary

Executive summary

• Adjusted operating profit rose 7% year-on-year to £316.0m, driven by revenue growth, cost control, and transformation progress.

• Gross inflows reached £68.2bn, the highest in three years, with net new business of £4.5bn excluding JVs and associates.

• Transformation and portfolio restructuring costs led to a 29% drop in profit before tax to £196.9m.

• £21m in cost savings delivered in H1, with a target of £50m for FY 2025 and £150m annualised by 2027.

• Strategic actions included closing non-core businesses, workforce reduction, and key leadership hires.

Financial highlights

• Net operating revenue up 2% year-on-year to £1,170.3m; adjusted net operating income up 3% to £1,213.9m.

• Adjusted operating expenses rose 1% to £897.9m, with cost:income ratio improving to 74% (from 75%).

• Adjusted operating EPS up 8% to 14.8p; interim dividend per share maintained at 6.5p.

• Statutory profit before tax fell 29% to £196.9m, reflecting £44.9m in transformation costs and £56.0m in restructuring charges.

• Average AUM excluding JVs and associates up 3% to £662.2bn, with total AUM stable at £776.6bn despite FX headwinds.

Outlook and guidance

• On track to deliver £150m annualised net cost savings by end of 2027, with £50m targeted for 2025.

• Targeting adjusted cost:income ratio below 70% by 2027 and return to profitable growth.

• Focused on execution, client outcomes, and continued investment in private markets and wealth management.

• Committed to stabilising Public Markets revenues and achieving 5–7% NNB rate in Wealth Management by 2027.

• Market and geopolitical uncertainty remain, but pipeline and flows are robust.