Final Results - Part 1 of 8
Increased focus on fee business driving growth and performance
· Assets under administration from continuing operations increased by 38% to £296.6bn, driven by net inflows, positive market movements and the acquisition of Ignis Asset Management:
o SLI continues to deliver strong investment performance in volatile markets with total AUM from continuing operations now £245.9bn
o UK retail and corporate fee business AUA up 7% to £102.8bn
o During the year we have added over 340,000 new customers in the UK through auto enrolment and over 560,000 since auto enrolment began
· Fee based revenue up 14% to £1,433m including benefit of Ignis acquisition in second half of the year
· Group underlying performance* up 21% to £561m and operating profit1 before tax from continuing operations up 19% to £604m
· Sale of Canada increases focus on fee business and enables proposed return of £1.75bn to shareholders
· Strong and resilient balance sheet with IGD surplus of £2.9bn and Group underlying cash generation2 up 21% to £408m
· Final dividend of 11.43p making a total of 17.03p, up 7.8%, for the year
David Nish, Chief Executive, commented:
"Standard Life has continued to perform well driven by a focus on delivering value for money for our customers and clients. We have increased revenues, profits and cash generation and now have assets under administration of almost £300bn.
"We have made good strategic progress during the year with the acquisition of Ignis Asset Management and the sale of our Canadian operations increasing focus on fee business and enabling a £1.75bn return to shareholders. We are also well positioned to deal with the far-reaching reforms to the savings and retirement income rules in the UK and to support customers through these changes. Standard Life Investments has continued to perform strongly and expand internationally.
"Although investment markets are unsettled and may affect the near-term pace of asset and revenue growth, we are very well placed for the future. We have an excellent track record of succeeding in evolving markets and 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."