The Standard Life Aberdeen Board remains committed to delivering a dividend that is sustainable over the medium term. Reflecting current operating profitability, industry trends, and economic and market uncertainties, the Board is rebasing the dividend to a level from which it can be grown
Therefore the Board is recommending a final dividend in respect of 2020 of 7.3p per share, bringing the total dividend for the year to 14.6p per share. The Board intends to maintain the total dividend at this level until covered at least 1.5 times by adjusted capital generation, at which point the Board will seek to grow the dividend in line with its assessment of underlying medium term growth in profitability.
Other financial highlights include:
Fee based revenue of £1,425m (2019: £1,634m), lower than prior year largely reflecting impact of 2019 outflows
Adjusted operating expenses reduced by 10% to £1,206m (2019: £1,333m) due to cost control initiatives and efficiencies including c£20m of COVID-related savings in discretionary costs
Adjusted operating profit of £219m (2019: £301m) and adjusted profit before tax of £487m (2019: £584m) largely reflecting lower revenue
IFRS profit before tax of £838m (2019: £243m) reflecting profit on disposal of interests in associates partially offset by impairments of goodwill and intangibles
Diluted EPS of 37.9p and adjusted diluted EPS of 18.1p, compared with 8.8p and 19.3p, respectively, in 2019
Improved investment performance with 66% (2019: 60%) of AUM above benchmark over three years
Net outflows reduced to £3.1bn (2019: £17.4bn) excluding LBG tranche withdrawals, driven by a significant improvement in Institutional and Wholesale net flows
AUMA of £534.6bn (2019: £544.6bn) reflecting £25.9bn LBG tranche withdrawals, partially offset by improvements in markets
Cost/income ratio of 85% (2019: 82%), driven by revenue decline
Strong surplus capital position of £2.3bn (2019: £1.7bn) benefiting from Indian stake sales
