Standard Life’s profits for six months to June 2011 jumped by 44 per cent as revenues through fee-based IFAs grew by 14 per cent, while corporate business assets under management rose by 7 per cent to £39.3 billion during the period.
Net inflows for corporate schemes were £2.1 billion during the period, while there was a gain of £400 million from market movements, boosting assets under administration from £36.8 billion.
Operating profit for the first six month has been recorded at £262 million, a jump of 44 per cent from £182 million, reported six months ago, while fee-based revenue soared by £611 million.
Long-term savings new business went up by 16 per cent to £11.2 billion, while group assets under administration were recorded at £200 billion for six months to June 2011, up from £196.8 billion in December 2010.
The provider managed to cut costs by £30 million through “efficiencies” savings. Interim dividends also went up by 5.7 per cent to 4.60p.
The company was “on track” to achieve its operational and financial transformation, said David Nish, chief executive of Standard Life.
“We are investing to strengthen our market positions and have launched a number of innovative propositions to respond to the changing needs of our customers and their advisers. We are competitively positioned to benefit from market changes and the regulatory environment,” said Mr. Nish.
“We believe that the changes we are making to the business will deliver a stronger Standard Life, which, in turn will deliver sustained growth in the future. We are confident that the strong capital position of the group, and our attractive customer propositions, will enable us to continue to succeed in the current volatile market conditions,” he added.
“Today’s results demonstrate the real progress we are making in our transformation,” he said.
The company also launched its Lifelens corporate wrap in March for two large schemes. 84 new schemes joined the firm in the first half of 2011 with 41,000 workers joining a Standard Life pension scheme during this period.