TIDMSL.
RNS Number : 9573U
Standard Life plc
04 August 2015
Standard Life plc
Half year results 2015
4 August 2015
Part 1 of 4
Focus on fee business driving growth and performance
-- Fee based revenue, including Ignis, up 17% to GBP761m with 95% of income now fee based
-- Assets under administration(1) up to GBP302.1bn (FY 2014:
GBP296.6bn; H1 2014: GBP223.9bn) in volatile markets, driven by
increased demand for our investment solutions and acquisition of
Ignis
-- Standard Life Investments meeting the investment needs of customers across the globe:
o Strong 3rd party net inflows of GBP5.2bn despite outflow from
low revenue margin mandate of GBP1.7bn
o Wholesale and institutional net inflows of GBP7.1bn of which
70% from outside of the UK
o Continuing excellent investment performance with 3rd party AUM
above benchmark(2) - 1 year 79%; 3 years 95%; 5 years 97%
-- UK business building momentum and well placed in a changing long-term savings environment:
o Workplace and retail new fee business net inflows up 23% to
GBP2.9bn, representing annualised 8% of opening AUA
o Added 120,000 new customers in the UK through auto enrolment
in H1 2015 contributing to 15% increase in regular contributions
into workplace pensions
o Increased Wrap assets by 11% to GBP23.3bn with Wrap net
inflows up 17% to GBP2.1bn
-- Group underlying performance*(,1) up 9% to GBP299m and
operating profit(1,3) before tax up 6% to GBP290m after a GBP39m
reduction in spread/risk margin
-- Group underlying cash generation(1) up 17% to GBP223m
-- Interim dividend up 7.5% to 6.02p
David Nish, Chief Executive, commented:
"Standard Life has performed well during the first half of 2015
driven by a focus on providing value for our customers, clients and
shareholders. We have increased the assets that we administer on
behalf of our customers to GBP302bn helped by strong demand for our
propositions.
"Standard Life Investments actively manages GBP250bn of assets
across the globe driven by consistently strong investment
performance. We are continuing to see the benefits of our expanding
distribution capabilities and strategic relationships with 70%(4)
of net inflows from outside the UK and strong growth in net inflows
through the wholesale channel.
"Our UK fee based propositions continue to build momentum with
regular contributions into our workplace pensions up 15%. The
strength of these propositions, investment solutions and our market
positioning means we have been able to help our customers with the
new pensions regulations and continue to support them as saving for
their futures becomes increasingly front of mind.
"It has been an absolute privilege to lead Standard Life for the
last six years and to help build our business into the strong
global player it is today. I wish Keith and the inspirational
people across all of our Group every success for the future.
Standard Life is very well positioned to deliver ongoing growth and
to help our customers and clients to save and invest, so that they
can look forward to their financial futures with confidence."
Unless otherwise stated, all figures are reported on a
continuing operations basis(1) .
* Group underlying performance is Group operating profit before
tax from continuing operations after excluding the impact of
spread/risk operating actuarial assumption changes and specific
management actions in the reporting period. A full reconciliation
to profit for the period attributable to equity holders of Standard
Life plc is presented on page 2 of this release.
Financial highlights
H1 2015 H1 2014
Group profitability GBPm GBPm
============================================= ====== ========== =========
Fee based revenue 761 652
Spread/risk margin 40 79
====================================================== ========== =========
Total income 801 731
Total operating expenses (533) (473)
Capital management 1 (4)
Share of associates' and joint
ventures' profit before tax 30 20
====================================================== ========== =========
Group underlying performance
from continuing operations(1) 299 274
====================================================== ========== =========
One-off contribution to with-profits
business in Germany (9) -
Group operating profit before
tax from continuing operations(1) 290 274
====================================================== ========== =========
Tax on operating profit (37) (46)
Share of associates' and joint
ventures' tax expense (5) (1)
====================================================== ========== =========
Operating profit after tax 248 227
Non-operating items (158) (36)
Tax on non-operating items 19 11
Dubai and Singapore included
in discontinued operations segment(5) (40) (6)
====================================================== ========== =========
Profit for the period attributable to
equity holders of Standard Life plc from
continuing operations(1) 69 196
====================================================== ========== =========
IFRS profit from discontinued operations(5) 1,142 79
================================================= ========== =========
Total IFRS profit for the period
attributable to equity holders of
Standard Life plc 1,211 275
================================================= ========== =========
Group underlying performance from continuing H1 2015 H1 2014
operations(1) GBPm GBPm
====================================================== ========== =========
Standard Life Investments 154 102
UK 141 165
Europe 15 23
India and China 21 12
Other (32) (28)
=============================================== ==== ========== =========
Group underlying performance from
continuing operations(1) 299 274
=============================================== ==== ========== =========
Other Group performance indicators
from continuing operations(1) H1 2015 H1 2014
=============================================== ==== ========== =========
Group operating profit before tax
(GBPm) 290 274
Group underlying cash generation
(GBPm) 223 191
Group assets under administration
(GBPbn) 302.1 296.6(6)
Group net inflows (GBPbn) 3.4 4.3
=============================================== ==== ========== =========
Other Group financial highlights H1 2015 H1 2014
=============================================== ==== ========== =========
Group IGD surplus (GBPbn) 2.6 2.9(6)
Group diluted operating EPS from
continuing operations (p) 13.6 11.4
Group diluted EPS from continuing
operations (p) 3.2 8.2
Interim dividend per share (p) 6.02 5.60
=============================================== ==== ========== =========
Group performance
Standard Life continues to perform well driven by a focus on
delivering value for money for our customers and clients.
Group assets under administration (AUA)(1) increased to
GBP302.1bn (FY 2014: GBP296.6bn) in volatile markets, benefiting
from strong net inflows of GBP3.4bn and small but positive market
movements of GBP2.1bn.
Net inflows of GBP3.4bn included outflows from spread/risk
business of GBP0.5bn which were more than offset by net inflows
into our fee propositions of GBP3.8bn. Excluding natural run-off
from conventional with profits of GBP0.4bn and net outflows from
assets managed for the Phoenix Group of GBP2.2bn, adjusted net
inflows into our fee based propositions were strong at GBP6.4bn (H1
2014: GBP5.1bn).
Standard Life Investments continued to deliver strong investment
performance and saw total assets under management (AUM) increase to
GBP250.0bn (FY 2014: GBP245.9bn). Within this, third party AUM
(excluding strategic partner life business) increased to GBP124.4bn
(FY 2014: GBP117.5bn) benefiting from net inflows of GBP7.1bn into
our institutional and wholesale propositions which were partially
offset by outflows from our Ignis business of GBP1.9bn including a
divestment of GBP1.7bn from one large low revenue margin mandate.
Strategic partner life business AUM of GBP125.6bn (FY 2014:
GBP128.4bn), which includes assets managed on behalf of Standard
Life Group and the Phoenix Group, reflects scheduled outflows from
annuities and conventional with profits as well as the expected
outflows from the assets managed for the Phoenix Group.
AUA in the UK of GBP130.4bn (FY 2014: GBP128.1bn) benefited from
a 15% increase in regular contributions into UK workplace pensions
as well as strong inflows into our retail new propositions driven
by ongoing growth in assets on our Wrap platform and strong demand
for our market-leading drawdown proposition. Total UK workplace and
retail new net inflows of GBP2.9bn were up 23% and represented
annualised 8% of opening AUA.
Steady net inflows in Europe and India and China also
contributed to the growth in AUA. Positive market movements at the
start of the year were mostly offset by market volatility in June
and the strength of Sterling against other currencies including the
Euro.
Group operating profit(1) increased by 6% to GBP290m (H1 2014:
GBP274m) after a GBP39m reduction in spread/risk margin due to
lower annuity sales and the reduced benefit from asset liability
management. This was more than offset by strong growth in our fee
business with fee based revenue up 17% to GBP761m driven by growth
in AUA including the acquisition of Ignis in the second half of
2014. Group operating expenses as a proportion of average AUA
reduced by 5bps to 42bps (FY 2014: 47bps). In the UK, demand for
our auto enrolment solutions, including from SMEs, helped us to add
in excess of 120,000 new customers during H1 2015 and we have
secured over 3,700 new schemes with 680,000 joiners since the start
of auto enrolment. Standard Life Investments revenue increased by
40% to GBP402m (H1 2014: GBP288m), which included a 31% increase in
revenue from third party assets (excluding strategic partner life
business) to GBP298m (H1 2014: GBP227m).
IFRS profit after tax attributable to equity holders(1) was
GBP69m (H1 2014: GBP196m) reflecting an increase in non-operating
items. This includes a one-off charge of GBP46m for the
acceleration of DAC amortisation in Hong Kong due to regulatory
change, GBP38m due to the closure of our Singapore insurance
business, GBP20m related to the restructuring of the UK defined
benefit staff pension scheme and GBP17m of Ignis integration costs.
Total IFRS profit of GBP1,211m (H1 2014: GBP275m) includes IFRS
profit from discontinued operations of GBP1,142m (H1 2014: GBP79m)
reflecting the gain on the sale of our Canadian business to
Manulife.
Following the sale of our Canadian business and the return of
value to shareholders of GBP1.75bn in April 2015 our capital
position remains strong with an IGD surplus of GBP2.6bn (FY 2014:
GBP2.9bn). We expect our capital position to remain strong
following the implementation of the Solvency 2 regime.
The Board has proposed an interim dividend of 6.02p per share
(H1 2014: 5.60p), an increase of 7.5%. The Group will continue to
apply its existing progressive dividend policy taking account of
market conditions and the Group's financial performance.
Outlook
We continue to deliver our clear and consistent strategy.
Standard Life Investments remains focused on delivering
excellent investment performance and continuing to respond to the
needs of our customers and clients through new and innovative
investment solutions. We will continue to expand our geographic
reach by building on success in overseas markets through
strengthening our own distribution as well as relationships with
global distribution partners in the US, Canada, India, Japan and
across the Standard Life Group. The integration of Ignis is on
track and we expect to achieve GBP50m of planned annual cost
savings and our EBITDA margin target of 45% by 2017.
Following changes announced in the Budget in March 2014 and in
line with guidance given at our Full year results 2014 in February
we expect the full year contribution from annuity new business to
reduce by between GBP10m-GBP15m and the contribution from asset
liability management to reduce by between GBP30m-GBP40m compared to
full year 2014.
The investments we have made in our UK business in recent years
leave us well positioned to benefit from evolving customer needs
and regulatory changes. This, combined with the investment
expertise of Standard Life Investments and our focus on providing
value for our customers, continues to drive demand for our
propositions across the retail, workplace, institutional and
wholesale channels. Our fee business, including our leading income
drawdown proposition, is well placed for future growth.
As our business in Germany continues to accelerate its
transition away from with profits to unit linked products, we
expect a similar level of underlying performance from our German
and Irish savings businesses in the second half of the year.
In Hong Kong, our wholly owned operation continues to adapt to
regulatory change. Our JV in China is continuing to focus on
profitable growth and in India, HDFC Life and HDFC AMC continue to
perform strongly. We welcome the developments in respect of foreign
direct investment rules in India.
We are very well placed for the future. We have the products,
experience and proven investment performance to help our customers
and clients in all of our markets to save and invest, so that they
can look forward to their financial futures with confidence.
Business highlights - continuing operations(1)
Our goal is to create shareholder value through being a leading
customer-driven business focused on long-term investment savings
propositions in our chosen markets. This is underpinned by a simple
business model: increasing assets, maximising revenue and lowering
unit costs while optimising the balance sheet.
We continue to make good progress in each of our businesses:
Consistently strong performance by Standard Life Investments
-- Benefiting from the acquisition of Ignis, strong investment
performance, ongoing product innovation, high levels of client
service, and an expanding global distribution capability and
footprint
-- Operating profit before tax increased by 51% to GBP154m,
benefiting from a 31% rise in third party revenue (excluding
strategic partner life business) to GBP298m, the acquisition of
Ignis, increased profit from HDFC AMC and a continuing shift in mix
towards higher margin products including UK mutual funds and
multi-asset investment solutions
-- EBITDA margin increased to 40% (H1 2014: 36%) and we are on
track to achieve EBITDA margin of 45% by 2017
-- Strong third party net inflows (excluding strategic partner
life business) of GBP5.2bn (H1 2014: GBP4.0bn) were impacted by the
disinvestment of GBP1.7bn from one large low revenue margin mandate
from our Ignis business
-- Excluding Ignis, third party net inflows increased to GBP7.1bn (H1 2014: GBP4.0bn)
-- Net inflows into higher margin wholesale channel of GBP5.3bn
(H1 2014: GBP2.5bn) with strong demand for MyFolio, equities, fixed
income, real estate and our suite of multi-asset investment
solutions
-- GBP5.0bn (H1 2014: GBP2.2bn) of third party net inflows
(excluding strategic partner life business) from outside the UK as
we begin to see traction in Asia Pacific with net inflows of
GBP0.8bn (H1 2014: GBP0.1bn) and strong net inflows of GBP2.2bn
from Europe (H1 2014: GBP0.6bn)
-- Strong investment performance in volatile market conditions
with third party AUM (excluding strategic partner life business)
above benchmark: one year 79%; three years 95%; and five years
97%
Continuing growth in UK fee business
-- Our UK business continues to benefit from structural market
changes, careful strategic positioning, as well as its attractive
propositions and investment solutions
-- UK operating profit of GBP141m (H1 2014: GBP165m) reflects
ongoing momentum in fee business offset by an expected GBP37m
reduction in spread/risk margin due to lower annuity sales and
reduced benefit from asset liability management
-- Fee revenue increased 4% to GBP314m (H1 2014: GBP303m)
benefiting from higher AUA offset by a GBP6m reduction in revenue
earned on client cash balances
-- Added over 120,000 (H1 2014: 180,000) new customers during
the period driven by auto enrolment and the success of our "Good to
Go" proposition for SMEs
-- Our Wrap platform continued to attract advisers and assets
with AUA up 11% to GBP23.3bn (FY 2014: GBP20.9bn), while the number
of adviser firms using our Wrap platform increased to 1,405, an
increase of 65 adviser firms in H1 2015
-- Assets in our market-leading drawdown proposition increased
by 12% to GBP12.9bn (FY 2014: GBP11.5bn)
-- GBP6.0bn (86%) of total MyFolio AUM of GBP6.9bn is
distributed through the UK business and a quarter of total platform
AUA of GBP24.3bn is managed by Standard Life Investments
Continued progress in India and China
-- Operating profit before tax from JV business up 67% to GBP15m
(H1 2014: GBP9m) reflecting continued growth in premium income
-- HDFC Life ranked 2(nd) for new business sales in the private
life insurance market and leads the market in online sales(7)
-- Heng An Standard Life new business sales up 28%
-- Hong Kong business continues to adapt to regulatory changes
-- Announced closure of Singapore insurance business in June 2015
Business highlights - discontinued operations
Sale of business in Canada to Manulife for GBP2.2bn
The sale of our Canadian business, comprising Canadian long-term
savings and retirement, individual and group insurance business and
Canadian investment management business to Manulife was completed
on 30 January 2015:
-- Gain on sale of GBP1,097m included within non-operating items
-- IFRS profit after tax for the Canadian business, which in H1
2015 included the results for the month of January, was GBP45m (H1
2014: GBP79m)
-- Return of GBP1.75bn of value to shareholders in April 2015,
and share consolidation (9 for 11 shares) to maintain comparability
of share metrics completed on 16 March 2015
Business segment performance
Standard Life Investments
Strategy
We remain very well positioned to deliver profitable growth. We
are increasing our domestic and global presence and expertise
across a range of asset classes while delivering consistently
strong investment performance and strengthening relationships with
our distribution partners. We also continue to leverage our
investment expertise to maximise opportunities and revenues for the
wider Group.
Operating profit
H1 2015 H1 2014
GBPm GBPm
--------------------------------------------- -------- --------
Fee based revenue 402 288
Expenses (263) (197)
Share of associates' and joint ventures'
profit before tax 15 11
Operating profit before tax 154 102
--------------------------------------------- -------- --------
Interest, depreciation, amortisation(8) 7 3
============================================= ======== ========
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 161 105
--------------------------------------------- -------- --------
-- Operating profit up 51% to GBP154m (H1 2014: GBP102m) driven
by acquisition of Ignis and strong net inflows into higher margin
products including UK mutual funds and multi-asset investment
solutions
-- EBITDA up 53% to GBP161m (H1 2014: GBP105m) while EBITDA
margin increased to 40% (H1 2014: 36%)
-- Average fee revenue yield from third party business
(excluding strategic partner life business) maintained at 53bps (FY
2014: 53bps)
-- Operating expense bps expressed as a proportion of average
AUM maintained at 22bps (FY 2014: 22bps), reflecting higher AUM and
ongoing investment in expanding our distribution and geographic
reach as we increase the scale of our business
-- Our associate, HDFC AMC, remains the largest mutual fund
company in India with AUM of GBP15.8bn (FY 2014: GBP15.1bn)
contributing GBP15m (H1 2014: GBP11m) to operating profit
AUM and flows
-- Total AUM increased by 2% to GBP250.0bn (FY 2014: GBP245.9bn)
in volatile markets, benefiting from strong net inflow momentum and
small but positive market movements
-- Third party AUM (excluding strategic partner life business)
increased to GBP124.4bn (FY 2014: GBP117.5bn), representing 50% of
total AUM, while the reduction in strategic partner life business
AUM to GBP125.6bn (FY 2014: GBP128.4bn) was in line with
expectations
-- Third party net inflows (excluding strategic partner life
business) of GBP5.2bn were impacted by the disinvestment of
GBP1.7bn from one large low revenue margin mandate from our Ignis
business
-- Excluding Ignis, third party net inflows increased 78% to
GBP7.1bn (H1 2014: GBP4.0bn) driven by strong sales of MyFolio,
equities, fixed income, real estate and multi-asset strategies
through our wholesale distribution channel
-- 70% of third party net inflows (excluding Ignis) from outside
the UK reflecting the increasingly global nature of our business
with strong net inflows from Europe and North America of GBP2.2bn
(H1 2014: GBP0.6bn) and GBP1.5bn (H1 2014: GBP1.1bn) respectively,
while growing demand from Asia Pacific generated net inflows of
GBP0.8bn (H1 2014: GBP0.1bn)
-- Increased institutional client base to 2,371 (H1 2014: 1,695)
across 48 countries, including around 400 institutional clients
through Ignis
Operational highlights
-- Strong investment performance from Standard Life Investments
with third party AUM (excluding strategic partner life business)
above benchmark: one year 79%; three years 95%; and five years
97%
-- Collaborating across the Group to maximise the Group's share
of the value chain - AUM across our market-leading range of MyFolio
risk-based funds has reached GBP6.9bn (FY 2014: GBP5.9bn) of which
86% has been distributed through the UK business
-- Continued investment to expand our geographical footprint
with offices in 23 cities across 14 countries providing close
support to our clients
-- Strong pipeline of new investment initiatives, including new
innovative customer and client multi-asset and fixed income
solutions
-- We successfully converted our award-winning Property Income
Trust into a Real Estate Investment Trust to ensure greater
accessibility and tax efficiency for investors
UK and Europe
Strategy
We continue to strengthen the business by building on our
innovative propositions and investment solutions. We remain focused
on meeting the needs of our customers in an evolving regulatory and
economic environment. Our market-leading solutions make effective
use of technology to offer individual customers, advisers, employee
benefit consultants and employers the choices and support necessary
to meet their long-term savings objectives. This multi-channel
approach, strengthened by a direct digital offering and recent
launch of a UK-wide advice business, and ability to leverage the
close relationship with Standard Life Investments continues to
benefit not only customers but also our business and Standard Life
Group as a whole.
Operating profit
H1 2015 H1 2014
GBPm GBPm
----------------------------------- -------- -----------
Fee based revenue 314 303
Spread/risk margin 38 75
----------------------------------- -------- -----------
UK total income 352 378
Operating expenses (172) (173)
Investment management fees to SLI (47) (41)
Capital management 8 1
----------------------------------- -------- -----------
UK operating profit before tax 141 165
----------------------------------- -------- -----------
-- UK operating profit of GBP141m (H1 2014: GBP165m) reflects
ongoing momentum in fee business offset by expected GBP37m
reduction in spread/risk margin due to lower annuity sales and
reduced benefit from asset liability management
-- UK fee revenue increased by 4% to GBP314m (H1 2014: GBP303m)
benefiting from growth in AUA and demand for newer style
propositions partially offset by a GBP6m reduction in revenue
earned on client cash balances
-- Average UK fee revenue yield broadly stable at 61bps (FY
2014: 62bps) reflecting the impact of changes in business mix
including a growing proportion of newer style propositions
-- Total UK operating expenses of GBP219m (H1 2014: GBP214m), up
only GBP5m, include a GBP6m increase in investment fees paid to
Standard Life Investments
-- Europe operating profit of GBP6m (H1 2014: GBP23m) reflecting
a one-off GBP9m contribution to with-profits business in Germany,
adverse foreign exchange movements and a reduction in benefit from
asset liability management
AUA and flows
-- UK AUA up 2% to GBP130.4bn (FY 2014: GBP128.1bn) driven by
demand for our newer style retail and workplace propositions and
positive market movements
-- UK fee retail new net inflows increased by 21% to GBP1.8bn
(H1 2014: GBP1.5bn) with gross inflows up 17% to GBP3.6bn (H1 2014:
GBP3.1bn) as Wrap continued to lead the adviser platform
market(9)
-- UK workplace net inflows increased by 26% to GBP1.1bn (H1
2014: GBP0.9bn) reflecting our success in securing new schemes and
the positive impact of auto enrolment which drove a 15% increase in
regular contributions
-- Our distribution capabilities continue to benefit the Group,
with MyFolio assets sold through our UK business up 15% to GBP6.0bn
(FY 2014: GBP5.2bn) and a quarter of assets on our Wrap platform
managed by Standard Life Investments
-- Europe AUA of GBP17.4bn (FY 2014: GBP17.8bn) up 5% in
constant currency with net inflows of GBP0.5bn (H1 2014: GBP0.6bn)
up 4% in constant currency
Operational highlights
-- Increased Wrap platform assets by 11% to GBP23.3bn (FY 2014:
GBP20.9bn) with the highest net sales in the advised platform
market during Q1(9)
-- Number of adviser firms using our Wrap platform increased by
5% to 1,405 firms (FY 2014: 1,340) and number of adviser firms with
assets on Wrap greater than GBP20m up 5% to 271 firms (FY 2014:
259)
-- Added over 120,000 (H1 2014: 180,000) new customers during
the period driven by auto enrolment and the success of our "Good to
Go" proposition for SMEs
-- Drawdown AUA up 12% to GBP12.9bn (FY 2014: GBP11.5bn) with
our newly launched non-advised drawdown proposition attracting
GBP140m of assets largely managed by Standard Life Investments
-- In Germany the proportion of net inflows from unit linked
business continues to grow and increased to 19% (H1 2014: 9%)
Business segment performance continued
India and China
Strategy
Our India and China business consists of life joint ventures in
India and China, and our wholly owned operation in Hong Kong. We
continue to support the development of our joint ventures and
wholly owned business, including identifying opportunities across
Asia that can benefit our wider group, including asset management
opportunities for Standard life Investments.
Operating profit
H1 2015 H1 2014
GBPm GBPm
--------------------------------------------- --------- --------
Insurance JV businesses 15 9
Hong Kong 6 3
Operating profit before tax from continuing
operations(1) 21 12
--------------------------------------------- --------- --------
-- Operating profit increased to GBP21m (H1 2014: GBP12m) due to
growth in premium income in our joint ventures:
-- Ranked 2nd by new business sales in the private life
insurance market in India(7) with almost 20m customers
-- Heng An Standard Life now operates across 40 cities in China
with over 320,000 in-force policies
-- Strong net inflows and investment performance driving 7%
constant currency increase in AUA in our joint venture businesses
to GBP2.2bn (FY 2014: GBP2.1bn)
-- Hong Kong underlying performance expected to be lower in the
second half of the year reflecting changing regulatory
environment
-- We have announced the closure of our insurance business in
Singapore, subject to regulatory approval, which has been
classified as a discontinued operation
For a PDF version of the full half year results announcement,
including this Press Release, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/9573U_1-2015-8-3.pdf
For further information please contact:
Institutional Equity Investors Retail Equity Investors
0131 245 8028 / Capita Asset 0845 113
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0131 245 6466 /
Neil Longair* 07711 357 595
0131 245 2176 /
Chris Stewart* 07525 149 377
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0131 245 1365 / 0131 245
Steve Hartley* 07702 934 651 Stephen Percival* 1571
0131 245 2737 / 0131 245
Nicki Lundy* 07515 298 302 Nick Mardon* 6371
Tulchan Communications 020 7353 4200
* Calls may be monitored and/or recorded to protect both you and
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Newswires and online publications
A conference call for newswires and online publications will
take place on Tuesday 4 August at 7.45am (UK time). Participants
should dial +44 (0)20 3059 8125 and quote Standard Life half year
results 2015. A replay facility will be available for seven days
after the event. To access the replay please dial +44 (0)121 260
4861. The pass code is 1128166#.
Investors and Analysts
A presentation for investors and analysts will take place at 9am
(UK time) at Deutsche Bank, Winchester House, 1 Great Winchester
Street, London EC2N 2DB. There will also be a live webcast and
teleconference at 9am (UK Time), both of which will have the
facility to ask questions at the end of the formal presentation.
Participants should dial +44 (0)20 3059 8125 and quote Standard
Life half year results 2015. A replay facility will be available
for seven days after the event. To access the reply please dial +44
(0)121 260 4861 followed by 4450213#.
Notes to Editors:
1. Continuing operations excludes the Canada and Dubai
businesses and our Singapore insurance business, the closure of
which we announced in June 2015.
2. Excluding strategic partner life business.
3. Operating profit is IFRS profit before tax adjusted to remove
the impact of short-term market driven fluctuations in investment
return and economic assumptions, restructuring costs, impairment of
intangible assets, amortisation of intangible assets acquired in
business combinations, profit or loss on the sale of a subsidiary,
associate or joint venture and other significant one-off items
outside the control of management and not indicative of the
long-term operating performance of the Group.
4. Excluding Ignis.
5. Under IFRS 5, Singapore and Dubai do not constitute
discontinued operations and are included under continuing
operations in the consolidated income statement. Therefore the
analysis of Group operating profit by segment includes the
reclassification of Dubai and Singapore results between
discontinued and continuing operations.
6. As at 31 December 2014.
7. As at 31 March 2015.
8. Excludes amortisation of intangibles acquired in business
combinations which is excluded from operating profit before
tax.
9. Source: Fundscape latest available data.
10. In order to be consistent with the presentation of new
business information, certain products are included in both life
and pensions AUA and investment operations. Therefore, at a Group
level an elimination adjustment is required to remove any
duplication, in addition to other necessary consolidation
adjustments. Comprises GBP17.1bn (FY14: GBP15.2bn) related to fee
business eliminations and GBP0.4bn (FY14: GBP0.4bn) related to
other eliminations.
11. Comprises suite of global absolute return strategies and balanced funds.
12. Comprises cash, private equity and Wealth. Net inflows from
India cash funds GBP0.2bn (H1 2014: net inflow GBP0.1bn).
13. Net inflows from Ignis liquidity funds GBP0.7bn (H1 2014: GBPnil).
14. For more detailed information on the statutory results of
the Group refer to the Half year results 2015.
Assets and flows
Group assets under administration - six months ended 30 June
2015
Opening Closing
AUA Market AUA
at and at
1 Jan Gross Net other 30 Jun
2015 flows Redemptions flows movements 2015
------------------
Fee
(F)
Spread/risk
(S/R)
Other
(O) GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
--------------------------- -------- ------------------ ------------------ ------------------ --------------------- --------
Total fee 268.6 21.3 (17.5) 3.8 3.0 275.4
Total spread/risk 16.1 0.1 (0.6) (0.5) (0.2) 15.4
Total other 11.9 0.3 (0.2) 0.1 (0.7) 11.3
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
Total AUA 296.6 21.7 (18.3) 3.4 2.1 302.1
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
By business:
Standard Life
Investments
Third party(2) 117.5 16.0 (10.8) 5.2 1.7 124.4
Third party
strategic
partner life
business 43.8 - (2.2) (2.2) 0.5 42.1
------------------- ------- -------- ------------------ ------------------ ------------------ --------------------- --------
Standard Life
Investments
total third party F 161.3 16.0 (13.0) 3.0 2.2 166.5
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
UK
UK retail new fee
business 37.3 3.6 (1.8) 1.8 1.3 40.4
UK retail old fee
business 33.5 0.4 (1.6) (1.2) 1.1 33.4
Workplace 32.0 2.1 (1.0) 1.1 0.1 33.2
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
UK retail and
workplace
fee F 102.8 6.1 (4.4) 1.7 2.5 107.0
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
Conventional with
profits F 2.1 - (0.4) (0.4) - 1.7
Annuities S/R 15.5 0.1 (0.6) (0.5) (0.1) 14.9
Assets not backing
products O 7.7 - - - (0.9) 6.8
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
UK total 128.1 6.2 (5.4) 0.8 1.5 130.4
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
Europe
Fee F 17.2 1.1 (0.6) 0.5 (0.8) 16.9
Spread/risk S/R 0.6 - - - (0.1) 0.5
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
Europe total 17.8 1.1 (0.6) 0.5 (0.9) 17.4
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
UK and Europe total 145.9 7.3 (6.0) 1.3 0.6 147.8
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
India and China
Hong Kong F 0.4 - - - - 0.4
Joint ventures O 2.1 0.3 (0.2) 0.1 - 2.2
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
India and China
total 2.5 0.3 (0.2) 0.1 - 2.6
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
Other corporate
assets O 2.5 - - - 0.2 2.7
Consolidation and
eliminations(10) F/O (15.6) (1.9) 0.9 (1.0) (0.9) (17.5)
Group AUA -
continuing
operations 296.6 21.7 (18.3) 3.4 2.1 302.1
-------------------- ------ -------- ------------------ ------------------ ------------------ --------------------- --------
Standard Life Investments assets under management - six months
ended 30 June 2015
Opening Closing
AUA Market AUA
at and at
1 Jan Gross Net other 30 Jun
2015 flows Redemptions flows movements 2015
----------------------
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
-------------------- ---------------------- --------------- ------- ------------ ------- ----------- --------
Third party AUM(2) UK 75.5 7.7 (5.6) 2.1 2.5 80.1
--------------------
Europe 11.3 3.1 (0.9) 2.2 (1.0) 12.5
North America 8.1 2.3 (0.8) 1.5 0.1 9.7
Asia Pacific 2.0 1.1 (0.3) 0.8 0.1 2.9
India 6.1 0.5 - 0.5 (0.3) 6.3
Ignis 14.5 1.3 (3.2) (1.9) 0.3 12.9
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
By geography of client 117.5 16.0 (10.8) 5.2 1.7 124.4
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Equities 15.5 1.3 (1.4) (0.1) 0.9 16.3
Fixed Income 22.0 1.9 (1.5) 0.4 (1.2) 21.2
Multi Asset(11) 38.6 8.9 (3.3) 5.6 1.7 45.9
Real Estate 7.4 0.5 (0.3) 0.2 0.4 8.0
MyFolio 5.9 1.3 (0.4) 0.9 0.1 6.9
Other(12) 13.6 0.8 (0.7) 0.1 (0.5) 13.2
Ignis(13) 14.5 1.3 (3.2) (1.9) 0.3 12.9
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
By asset class 117.5 16.0 (10.8) 5.2 1.7 124.4
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Wholesale 35.5 8.9 (3.6) 5.3 (0.2) 40.6
Institutional 61.4 5.4 (3.6) 1.8 1.4 64.6
Wealth 6.1 0.4 (0.4) - 0.2 6.3
Ignis 14.5 1.3 (3.2) (1.9) 0.3 12.9
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
By channel 117.5 16.0 (10.8) 5.2 1.7 124.4
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Standard Life Group 84.6 2.3 (3.5) (1.2) 0.1 83.5
Phoenix Group 43.8 - (2.2) (2.2) 0.5 42.1
-------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Strategic partner life
business AUM 128.4 2.3 (5.7) (3.4) 0.6 125.6
-------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Standard Life Investment
AUM - continuing operations 245.9 18.3 (16.5) 1.8 2.3 250.0
-------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Group assets under management net flows - 15 months ended 30
June 2015
Fee 3 months 3 months
(F) 3 months to 3 months to 3 months
Spread/risk to 31 to 30 to
(S/R) 30 Jun Mar 31 Dec Sep 30 Jun
2015 2015 2014 2014 2014
Other
(O) GBPbn GBPbn GBPbn GBPbn GBPbn
--------------------------- -------------- -------------------- ------------------ --------- --------- ---------
Total fee 0.8 3.0 (3.1) 0.2 2.3
Total spread/risk (0.3) (0.2) (0.3) (0.2) (0.2)
Total other - 0.1 0.1 - -
------------------------------------------- -------------------- ------------------ --------- --------- ---------
Total net flows 0.5 2.9 (3.3) - 2.1
------------------------------------------- -------------------- ------------------ --------- --------- ---------
By business:
Standard Life Investments
Third party(2) 1.5 3.7 (2.9) 0.6 2.1
Third party strategic
partner life business (0.9) (1.3) (0.9) (0.7) -
------------------------------------------- -------------------- ------------------ --------- --------- ---------
Standard Life Investments
total third party F 0.6 2.4 (3.8) (0.1) 2.1
--------------------------- -------------- -------------------- ------------------ --------- --------- ---------
UK
UK retail new fee
business 0.9 0.9 0.8 0.6 0.7
UK retail old fee
business (0.7) (0.5) (0.5) (0.6) (0.5)
Workplace 0.5 0.6 0.6 0.7 0.4
------------------------------------------- -------------------- ------------------ --------- --------- ---------
UK retail and workplace
fee F 0.7 1.0 0.9 0.7 0.6
--------------------------- -------------- -------------------- ------------------ --------- --------- ---------
Conventional with
profits F (0.2) (0.2) (0.3) (0.2) (0.3)
Annuities S/R (0.3) (0.2) (0.3) (0.2) (0.2)
Assets not backing O
products - - - - -
--------------------------- -------------- -------------------- ------------------ --------- --------- ---------
UK total 0.2 0.6 0.3 0.3 0.1
------------------------------------------- -------------------- ------------------ --------- --------- ---------
Europe
Fee F 0.2 0.3 0.3 0.2 0.3
Spread/risk S/R - - - - -
--------------------------- -------------- -------------------- ------------------ --------- --------- ---------
Europe total 0.2 0.3 0.3 0.2 0.3
------------------------------------------- -------------------- ------------------ --------- --------- ---------
UK and Europe total 0.4 0.9 0.6 0.5 0.4
------------------------------------------- -------------------- ------------------ --------- --------- ---------
India and China
Hong Kong F - - - 0.1 -
Joint ventures O - 0.1 0.1 - -
--------------------------- -------------- -------------------- ------------------ --------- --------- ---------
India and China
total - 0.1 0.1 0.1 -
------------------------------------------- -------------------- ------------------ --------- --------- ---------
Consolidation and
eliminations(10) F (0.5) (0.5) (0.2) (0.5) (0.4)
Group net flows
- continuing operations 0.5 2.9 (3.3) - 2.1
------------------------------------------- -------------------- ------------------ --------- --------- ---------
Standard Life Investments assets under management net flows - 15
months ended 30 June 2015
3 months 3 months
3 months to 3 months to 3 months
to 31 to 30 to
30 Jun Mar 31 Dec Sep 30 Jun
2015 2015 2014 2014 2014
GBPbn GBPbn GBPbn GBPbn GBPbn
----------------------- ------------------------ --------------------- --------- --------- --------- ---------
Third party net
flows(2) UK 1.1 1.0 0.4 (0.3) 1.4
-----------------------
Europe 1.0 1.2 0.5 0.2 0.1
North America 0.7 0.8 0.3 0.1 0.4
Asia Pacific 0.6 0.2 0.1 0.2 -
India - 0.5 0.3 0.2 0.2
Ignis (1.9) - (4.5) 0.2 -
------------------------------------------------ --------------------- --------- --------- --------- ---------
By geography of client 1.5 3.7 (2.9) 0.6 2.1
------------------------------------------------ --------------------- --------- --------- --------- ---------
Equities - (0.1) (1.0) (0.5) -
Fixed Income - 0.4 - (0.9) (0.1)
Multi Asset(11) 2.9 2.7 1.4 1.0 1.4
Real Estate 0.1 0.1 0.3 0.2 0.2
MyFolio 0.5 0.4 0.5 0.3 0.4
Other(12) (0.1) 0.2 0.4 0.3 0.2
Ignis(13) (1.9) - (4.5) 0.2 -
------------------------------------------------ --------------------- --------- --------- --------- ---------
By asset class 1.5 3.7 (2.9) 0.6 2.1
------------------------------------------------ --------------------- --------- --------- --------- ---------
Wholesale 2.7 2.6 1.5 1.2 1.1
Institutional 0.7 1.1 0.1 (0.8) 0.9
Wealth - - - - 0.1
Ignis (1.9) - (4.5) 0.2 -
------------------------------------------------ --------------------- --------- --------- --------- ---------
By channel 1.5 3.7 (2.9) 0.6 2.1
------------------------------------------------ --------------------- --------- --------- --------- ---------
Standard Life Group (0.7) (0.5) (0.5) (0.8) (0.7)
Phoenix Group (0.9) (1.3) (0.9) (0.7) -
------------------------------------------------- --------------------- --------- --------- --------- ---------
Strategic partner life
business net flows (1.6) (1.8) (1.4) (1.5) (0.7)
------------------------------------------------- --------------------- --------- --------- --------- ---------
Standard Life Investment
net flows - continuing
operations (0.1) 1.9 (4.3) (0.9) 1.4
------------------------------------------------- --------------------- --------- --------- --------- ---------
Assets and flows continued
Group assets under administration - six months ended 30 June
2014
Opening Closing
AUA Market AUA
at and at
1 Jan Gross Net other 30 Jun
2014 flows Redemptions flows movements 2014
---------------------------
Fee
(F)
Spread/risk
(S/R)
Other
(O) GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
----------------------------------- -------- ------- ------------ ------- ----------- --------
Total fee 190.7 15.4 (10.8) 4.6 3.2 198.5
Total spread/risk 15.1 0.2 (0.6) (0.4) 0.6 15.3
Total other 8.9 0.2 (0.1) 0.1 1.1 10.1
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
Total AUA 214.7 15.8 (11.5) 4.3 4.9 223.9
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
By business:
Standard Life Investments
Third party(2) 89.8 10.8 (6.8) 4.0 1.5 95.3
Third party strategic
partner life business - - - - - -
---------------------------- ------ -------- ------- ------------ ------- ----------- --------
Standard Life Investments
total third party F 89.8 10.8 (6.8) 4.0 1.5 95.3
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
UK
UK retail new fee
business 33.8 3.1 (1.6) 1.5 0.9 36.2
UK retail old fee
business 33.5 0.3 (1.4) (1.1) 0.6 33.0
Workplace 29.2 1.8 (0.9) 0.9 (0.2) 29.9
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
UK retail and workplace
fee F 96.5 5.2 (3.9) 1.3 1.3 99.1
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
Conventional with
profits F 2.9 - (0.5) (0.5) 0.1 2.5
Annuities S/R 14.6 0.2 (0.6) (0.4) 0.5 14.7
Assets not backing
products O 5.7 - - - 0.5 6.2
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
UK total 119.7 5.4 (5.0) 0.4 2.4 122.5
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
Europe
Fee F 14.9 1.1 (0.5) 0.6 0.3 15.8
Spread/risk S/R 0.5 - - - 0.1 0.6
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
Europe total 15.4 1.1 (0.5) 0.6 0.4 16.4
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
UK and Europe total 135.1 6.5 (5.5) 1.0 2.8 138.9
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
India and China
Hong Kong F 0.3 - - - - 0.3
Joint ventures O 1.6 0.2 (0.1) 0.1 0.1 1.8
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
India and China
total 1.9 0.2 (0.1) 0.1 0.1 2.1
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
Other corporate
assets O 2.0 - - - 0.5 2.5
Consolidation and
eliminations(10) F/O (14.1) (1.7) 0.9 (0.8) - (14.9)
Group AUA - continuing
operations 214.7 15.8 (11.5) 4.3 4.9 223.9
----------------------------- ----- -------- ------- ------------ ------- ----------- --------
Standard Life Investments assets under management - six months
ended 30 June 2014
Opening Closing
AUA Market AUA
at and at
1 Jan Gross Net other 30 Jun
2014 flows Redemptions flows movements 2014
----------------------
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
-------------------- ---------------------- --------------- ------- ------------ ------- ----------- --------
Third party AUM(2) UK 68.3 6.8 (5.0) 1.8 0.8 70.9
--------------------
Europe 10.4 1.5 (0.9) 0.6 (0.5) 10.5
North America 5.2 1.7 (0.6) 1.1 0.7 7.0
Asia Pacific 1.8 0.4 (0.3) 0.1 (0.2) 1.7
India 4.1 0.4 - 0.4 0.7 5.2
Ignis - - - - - -
---------------------- --------------- ------- ------------ ------- ----------- --------
By geography of client 89.8 10.8 (6.8) 4.0 1.5 95.3
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Equities 15.1 1.5 (1.3) 0.2 0.3 15.6
Fixed Income 20.2 1.4 (1.5) (0.1) 0.6 20.7
Multi Asset(11) 31.4 5.7 (3.0) 2.7 (0.1) 34.0
Real Estate 6.1 0.5 (0.3) 0.2 0.3 6.6
MyFolio 4.0 1.0 (0.2) 0.8 - 4.8
Other(12) 13.0 0.7 (0.5) 0.2 0.4 13.6
Ignis(13) - - - - - -
---------------------- --------------- ------- ------------ ------- ----------- --------
By asset class 89.8 10.8 (6.8) 4.0 1.5 95.3
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Wholesale 28.9 6.0 (3.5) 2.5 0.4 31.8
Institutional 55.1 4.5 (3.0) 1.5 1.0 57.6
Wealth 5.8 0.3 (0.3) - 0.1 5.9
Ignis - - - - - -
---------------------- --------------- ------- ------------ ------- ----------- --------
By channel 89.8 10.8 (6.8) 4.0 1.5 95.3
------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Standard Life Group 80.3 2.1 (3.2) (1.1) 1.5 80.7
Phoenix Group - - - - - -
-------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Strategic partner life
business AUM 80.3 2.1 (3.2) (1.1) 1.5 80.7
-------------------------------------------- --------------- ------- ------------ ------- ----------- --------
Standard Life Investment
AUM - continuing operations 170.1 12.9 (10.0) 2.9 3.0 176.0
-------------------------------------------- --------------- ------- ------------ ------- ----------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
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