Standard Life H1 profits jump 18%

Standard Life's operating profits before tax rose by 18% to £341m in H1, which it has attributed to 'diversification in challenging markets'.

Related topics:  Finance News
Rozi Jones
9th August 2016
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"Despite elevated uncertainty we are benefiting from our strong long-term relationships with a broad range of clients and customers who reacted in different ways to the changing market environment."

Both of the firm's major divisions delivered growth in profits, with Standard Life Investments seeing underlying profits increase 14% to £176m and UK Pensions and Savings growing by 7% to £151m.

Group assets under administration increased 7% to £328bn.

Assets on the Standard Life Wrap rose 20% to £28 billion, while regular contributions into workplace pensions rose 4% to £1.5bn.

Keith Skeoch, Chief Executive of Standard Life, commented: “Standard Life continues to make good progress towards building a world-class investment company, against a backdrop of volatile investment markets, by growing assets, profits, cash flows and returns to shareholders.

“Despite elevated uncertainty we are benefiting from our strong long-term relationships with a broad range of clients and customers who reacted in different ways to the changing market environment. The increase in the stake in HDFC Life and the proposed combination with Max Life will increase our exposure to the attractive and fast growing Indian market, while the agreement to acquire Elevate will strengthen our leading position in the advised platform market."

Nicholas Hyett, Equity Analyst at Hargreaves Lansdown, added: "Standard Life is benefiting from the on-going shift from defined benefit to defined contribution pension schemes, and auto-enrolment.

"The shares took a pummelling following the UK vote to leave the EU, along with the rest of the sector, but have recovered much of those losses as investors relaxed about the state of balance sheets across the industry.

"Standard Life has transformed itself over the last fifteen years or so from a traditional life insurer to a fee-based asset manager. The group now has two main business lines - Standard Life Investments, which offers a range of active and passively managed funds; and a UK savings and pensions business. The latter includes the Wrap platform for financial advisers and the group's corporate pensions proposition, both of which provide a strong distribution platform to channel inflows into the investment business.

"The group continues to actively diversify away from its UK heritage, a move that is only likely to increase following the referendum. Standard Life Investments are increasingly targeting global institutional investors, while the increased investment in India looks to replicate some of Prudential’s success in offering financial services to the rapidly growing emerging world."

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