A British wealth manager has reported a 5.7 per cent drop in pre-tax profits, due to inflationary pressures.

London-based Brewin Dolphin's profits fell to £38. in the six months to March 13, compared with £40.7 million over the same period in 2021, as reported by the Daily Mail.

The firm's total operating costs before adjusted items were 5.7 per cent higher in 2022 and its fixed costs increased by £8 million to £122.3 million.

Royal Bank of Canada made an agreed £1.6 billion offer for Brewin Dolphin earlier this year. Directors gave their unanimous backing for the deal, which is expected to complete at the end of the third quarter of this year.

The combination would make RBC Wealth Management the third biggest wealth manager in Britain and Ireland.

British investment firms have benefited heavily from hundreds of thousands of new customers during the pandemic, largely made up of young adults trying investing for the first time.