Shares in the blue-chip wealth manager Schroders surged to a two-year peak on Thursday, 15 January 2026, after a powerful influx of new business triggered a significant rise in management fees.
Financial Performance Exceeds Expectations
The FTSE 100 firm informed the market that it anticipates its full-year operating profit to reach £745 million, a substantial increase from the £603 million reported the previous year. This positive forecast propelled the company's share price up by nine per cent to 453.40p in morning trading.
Schroders is eyeing net income of £2.6 billion for the year, up from £2.4 billion, driven by higher management fees. These fees were boosted by a surge in assets under management and new client mandates. Meanwhile, costs are projected to remain broadly flat year-on-year, having reached £1.8 billion last year.
Strategic Reshaping Bears Fruit
The company's strategic overhaul is showing clear results. Its cost-income ratio, a crucial efficiency metric, improved to 71 per cent, down from 75 per cent a year earlier. Furthermore, total assets under management, including joint ventures, swelled to £825 billion. This growth was fuelled by a net inflow of nearly £11 billion in new business.
Analysts at Panmure Liberum noted that the unscheduled trading update demonstrated progress "well ahead of the market’s expectations." They praised the new management team for delivering at speed on its goals of reinvigorating growth and addressing the cost base.
Lloyds Deal and Future Targets
Earlier in the year, banking giant Lloyds Banking Group acquired the remaining 49.9 per cent stake in Schroders Personal Wealth (SPW), taking full control of the venture. SPW, which will be rebranded as Lloyds Wealth, administers £17 billion in assets for 60,000 clients.
Oliver Gregson, chief executive of wealth management at Schroders, stated the announcement "represents a meaningful step in reshaping our business." The firm reaffirmed its commitment to a transformation target of £150 million in annualised net savings by the end of 2027.
