Schroders beat expectations in the half year to June by producing a 40% jump in pre-tax profits to £185.6m (€274m), while revealing reduced outflows of institutional business in the second quarter.

Analysts said private equity profits of £36.2m, against £17.7m, were surprisingly high, on the back of realised gains and a rise in carried interest participations. A 27% rise in asset management profits to £123.4m and a 42% jump in private banking to £15.9m were well up to expectations.