Standard Life plc
Preliminary Results 2011
13 March 2012
Increased operating profits and cash flow delivered in challenging market conditions
Continuing growth in assets and strong net flows
· Long-term savings new business sales up 7% to £19.7bn (2010: £18.5bn)
· Long-term savings net inflows of £4.0bn (2010: £4.7bn)
· Standard Life Investments third party net inflows of £4.3bn (2010: £5.7bn) and third party assets under management (AUM) of £71.8bn (2010: £67.7bn)
· Group assets under administration of £198.4bn (2010: £192.9bn)
Operating profit increased by 28%
· Including fee based revenue up 8% to £1,223m (2010: £1,131m)
· Lower unit costs with acquisition expenses of 140bps (2010: 149bps) and maintenance expenses of 41bps (2010: 42bps)
· Operating profit before tax from continuing operations up 28% to £544m (2010: £425m)
· IFRS profit after tax attributable to equity holders of £298m (2010: £432m) lower largely due to year end financial market levels
Capital and cash generation increased by 53%, dividend up 6.2% and strong capital position
· EEV operating capital and cash generation 53% higher at £438m (2010: £287m)
· Final dividend up 6.4% to 9.20p, resulting in total dividend for 2011 up 6.2% to 13.80p
· IGD surplus of £3.1bn (2010: £3.8bn) following successful tender for €687m of lower tier two subordinated liabilities
Delivering for our customers
· Now over 1,000 adviser firms on Wrap with platform assets reaching £11.4bn
· Continued growth of MyFolio with assets now exceeding £1.0bn and launch of suite of income funds
· HDFC Asset Management Company is the largest mutual fund company in India with AUM of £9.8bn
David Nish, Chief Executive, commented:
"Today's results again demonstrate that we are well on track to transform the operational and financial performance of Standard Life.
"We have delivered increased operating profits and cash flow while investing to strengthen our market positions. We have developed innovative propositions to respond to the changing needs of our customers and their advisers, ensuring we are well positioned to benefit from market changes and the new regulatory environment.
"In the year ahead, we expect to see the work that we have done as part of the transformation programme reinforce our clear leading positions in our chosen markets.
"While the economic backdrop remains uncertain, we are confident that the strong capital position of the Group, the demand for our attractive customer propositions and the continued improvements in operational and capital efficiency mean that we are well on track to achieve an ongoing improvement in financial performance."
