Profit before tax and exceptional items stood at £507.8m, compared to £360m in the previous year, the group said in its annual results.
Assets under management rose to £262.9bn, up 24% from £212bn last year. However, overall net inflows slipped to £7.9bn, from £9.4bn in 2012.
Net revenue increased by 24% to £1.4bn, from £1.1bn last year. The strong performance was driven by the firm’s acquisition of Cazenove Capital in July, which strengthened its UK retail funds division.
The firm’s total AUM of £17.2bn at the time the transaction was announced in March increased to £23.8bn by year end.
Schroders' asset management division saw a slight drop-off in net new business of 3% – from £9.4bn compared with £9.7bn in 2012 – as its head of UK equities Richard Buxton departed. New business was generated equally across institutional and intermediary.
In its wealth management sector, net outflows dipped to £1.5bn, compared with £300m in 2012, which the company attributed to the expected loss of two large mandates in the second half. Going forward the firm said that its acquisition of Cazenove Capital had “significantly strengthened” its position in wealth management.