Standard Life first-half operating profit rises 6 percent

Pretax profit fell to GBP210 million in the six months, compared with GBP332 million in the corresponding half of the prior year.

Operating profit climbed to 290 million pounds even after a 39 million pound charge from lower annuity sales, the Edinburgh-based company said Tuesday.

SLI also saw its AUM figure move higher from £245.9bn at the end of December 2014 to £250bn.

New net inflows rose 21% to £1.8 billion in the period to 30 June 2015, compared to £1.5 billion in the same period in 2014.

Assets in the firm’s drawdown proposition rose 12 per cent from the full year 2014 to nearly £13bn, although these gains were offset by the annuity business decreasing by 49 per cent to £38m.

“Standard Life Investments actively manages £250bn 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.

Standard Life has reported a 15% drop in its UK profits as the pension reforms continued to impact badly on its annuity business.

‘Along with offering expertise through 1825, our UK-wide financial advice business, we are also meeting the rising demand for advice through our ongoing support for advisers, helping them to grow their businesses.’. Fee-based revenue, including Ignis, was up 17% to £761m with 95% of income now fee based. He said it had been a privilege “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.

The group has been moving its business away from focusing on insurance and more toward asset management over the six years in which David Nish, chief executive, has led the company.