LONDON (Reuters) - Fund firm Schroders reported a 12 percent drop in pretax profits in 2012, after client departures from its private banking business and reduced performance fee income from its funds cut into revenues.
Unveiling its full-year results on Thursday, Schroders said pretax profits for the 12 months to December 31 stood at 360 million pounds, down from 407.3 million a year earlier.
However, the profits did beat analysts’ consensus forecast of 351.7 million pounds.
Net revenues in its private banking unit dropped 17 percent, led by lower management fees and business outflows.
Further weakness in the commercial property market also led to another 7.9 million pounds of losses from previously impaired loans, Schroders said.
In its larger asset management business, net revenues were down just 3 percent as institutional inflows offset a dip in performance fees.
Net inflows and higher markets combined to increase assets under management to 212 billion pounds by the end of the year, up from 187.3 billion in 2011.
The fund firm also increased its final dividend, bringing the full-year dividend to 43 pence per share, up from 39 pence.
Reporting by Tommy Wilkes; Editing by Mark Potter