5th Aug 2014 07:49
LONDON (Alliance News) - Standard Life PLC Tuesday reported a 12% rise in first half pretax operating profit, as fee-based income was buoyed by UK workers automatically enrolling into corporate pension schemes and an increase in third-party assets under administration in its investments arm.
Standard Life increased its interim dividend to 5.60 pence per share from 5.22p.
The FTSE 100 long-term savings and investment business said it made a GBP339.0 million pretax operating profit in the six months ended June 30, compared with GBP304.0 million in the corresponding period last year. Standard Life's measure of profitability is pretax profit adjusted for a number of items, including market-driven short-term fluctuations in investment return and economic assumptions. Profit attributable to Standard Life equity holders increased to GBP275.0 million from GBP129.0 million.
Income increased by GBP40.0 million to GBP940.0 million, as an increase in fee-based revenue, which makes up the bulk of total income, rose by GBP64.0 million to GBP758.0 million, more than offsetting a fall in spread/risk margin to GBP182.0 million from GBP206.0 million. Acquisition expenses edged down by GBP6.0 million to GBP149.0 million, while maintenance expenses rose by GBP23.0 million to GBP453.0 million.
Group assets under administration increased by 4% to GBP254.1 billion during the first half, while Standard Life Investments' third-party assets under management increased by 5% to GBP108.0 billion. The increase in Standard Life Investments' third party assets under management was driven by third party net inflows of GBP4.2 billion. Assets under administration across the rest of the group benefited from a 61% increase in net flows of corporate pensions in the UK and "stable net inflows" into its retail propositions.
"Market movements were mainly positive but were partly offset by the negative impact of foreign exchange as sterling strengthened against other currencies, including the Canadian dollar and Indian rupee," Standard Life said in a statement.
Standard Life shares were Tuesday quoted up 2.5% at 373.40 pence.
By Samuel Agini; [email protected]; @samuelagini
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