(RTTNews) - Asset management company Schroders Plc (SDR.L: News ) in an interim management statement Tuesday reported a decline in pre-tax profit for the third quarter.

Pre-tax profit for the quarter plunged to £43.6 million from £78.0 million in the prior year. Pre-tax profit before exceptional items was £57.8 million, lower than £71.5 million in the previous year.

Segment-wise, Asset Management income for the quarter was £177.5 million, down from £188.1 million a year ago. Pre-tax profit before exceptional items for the segment was £55.3 million, lower than £60.7 million in the last year. Exceptional charges were £1.3 million relating to redundancies, compared to £1.6 million in the prior-year quarter.

Private Banking income dropped to £23.6 million from £29.0 million in the same quarter a year earlier. Profit before tax was £6.3 million, much lower than £11.6 million a year ago.

The Group segment reported a pre-tax loss before exceptional items of £3.8 million, wider than £0.8 million in the year-ago quarter. Exceptional charges of £12.9 million comprised £3.7 million of surplus space provisions and unrealised impairments of financial assets of £9.2 million.
Funds under management at the end of the quarter increased to £138.9 billion from £113.3 billion as of June 30. Net inflows were £7.0 billion across a broad range of products. Net inflows in intermediary were £3.7 billion and £3.3 billion in institutional.

For the nine months, net inflows were £6.2 billion in intermediary and £2.4 billion in institutional. Net inflows for the nine-month period in Private Banking were £0.1 billion. Overall, net inflows for the nine months were £8.7 billion. Schroders noted that net inflows have continued to be good since the quarter end.

Total group capital at the end of the quarter was £1.56 billion, compared with £1.50 billion as of June 30.

SDR is currently trading at 1,195.00 pence per share, up 3.82%, on the London Stock Exchange.

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by RTT Staff Writer

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