Schroders' private banking arm has seen net revenues almost double following its acquisition of Cazenove Capital last summer.
In its results for the first quarter of the year, Schroders reported net revenue in its wealth management business had risen 90% to £50.3m, up from £26.5m in Q1 2013.
Profit before tax and exceptional items was up 171% at £13.3m, while AUM remained broadly flat at £30.2bn.
The asset management business saw net inflows of £3.8bn in the first quarter of 2014, thanks to a strong three months in the intermediary market. This figure is 58% higher than that of the fourth quarter last year. However, the asset manager cautioned demand may reduce in the short term.
Assets under management climbed 1.9%, from £262.9bn in December to a record £268bn at the end of March. As well as inflows, investment returns added £1.3bn over the quarter. Of net inflows, £2.8bn came from intermediary business and £1bn from institutions.
Asset management profit before tax was £113.4m. Net revenue was £306.2m, including performance fees of £6.3m. Total profit before tax was £118.9m - 3.4% higher than the first quarter last year.
Chief executive Michael Dobson (pictured) said 2014 has started well for Schroders: "We had a strong quarter in Intermediary with high levels of net inflows in Europe and the UK although, with markets facing a number of uncertainties, retail investor demand may reduce in the short term.
"In Institutional, we see a wide range of opportunities with a good pipeline of business we have won but which has not yet been funded including £12.2bn from Friends Life, as announced in March.”