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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Abrdn Plc | LSE:ABDN | London | Ordinary Share | GB00BF8Q6K64 | ORD 13 61/63P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Ins Agents,brokers & Service | 1.55B | 12M | 0.0061 | 250.16 | 2.99B |
From May 2019 to May 2024
TIDMSL.
RNS Number : 4310Z
Standard Life plc
07 March 2013
Standard Life plc
Preliminary Results 2012
7 March 2013
Part 1 of 5
Delivering substantial growth in profits and increasing dividends
Operating profit(1) increased by 65% with profit growth across all business units
-- Fee based revenue increased to GBP1,271m (2011: GBP1,205m)
-- Lower unit and absolute costs with acquisition costs of 156bps (2011: 169bps) and maintenance costs of 45bps (2011: 46bps)
-- Operating profit before tax up 65% to GBP900m (2011: GBP544m) driven by a significant improvement in UK performance, and the continuing growth of Standard Life Investments, as well as previously announced management actions in Canada and UK
-- IFRS profit after tax attributable to equity holders up 134% to GBP698m (2011: GBP298m)
Record assets under administration and Standard Life Investments third party assets under management
-- Group assets under administration of GBP218.1bn (2011: GBP198.4bn) -- Long-term savings new business sales of GBP19.3bn (2011: GBP19.7bn)
-- Long-term savings net inflows of GBP2.6bn(2) (2011: GBP4.0bn(2) ) including gross inflows of GBP20.3bn(2) (2011: GBP20.6bn(2) )
-- Standard Life Investments third party net inflows of GBP6.1bn(2) (2011: GBP4.3bn(2) ) including 62% from outside UK
-- Standard Life Investments third party assets under management (AUM) of GBP83.0bn (2011: GBP71.8bn) with increasing asset class and geographic reach
Strong balance sheet and capital and cash generation up 68%
-- EEV operating capital and cash generation 68% higher at GBP734m (2011: GBP438m)
-- Issued GBP500m lower tier 2 subordinated debt in the UK and CA$400m lower tier 2 subordinated debt in Canada, taking advantage of strong demand from investors and improved pricing conditions
-- IGD surplus of GBP4.1bn (2011: GBP3.1bn) remained relatively insensitive to market movements
Progressive dividend up 6.5%
-- Final dividend up 6.5% to 9.80p, making a total of 14.70p for the year (2011: 13.80p)
Special dividend of 12.80p (GBP302m)
-- Strong capital position supports special dividend of 12.80p (GBP302m)
David Nish, Chief Executive, commented:
"Standard Life has delivered a substantial increase in profitability and has a strong capital position supporting increased dividends for our shareholders.
We have been building strong positions in our core markets. In the UK we are ready to benefit from the significant changes to the market and the increased customer need for savings products. In Standard Life Investments we have one of the world's leading asset managers whose reach and scale is increasingly global. Canada is performing well under its new management team. In Asia we are building exciting businesses in our chosen markets which are full of potential, opening branches in Singapore and Dubai. Our Indian businesses go from strength to strength.
Standard Life has undergone considerable change over the past three years. As a result we now have significant opportunities for further strong and sustainable growth."
Financial Highlights
Hot Features
Premium
2012 2011
Key performance indicators GBPm GBPm
----------------------------------------------------- ---------- ----------
Operating profit before tax 900 544
EEV operating profit before tax 1,116 989
EEV operating capital and cash generation 734 438
Assets under administration (GBPbn) 218.1 198.4
Net flows (GBPbn) 5.0 5.4
----------------------------------------------------- ---------- ----------
2012 2011
Operating profit GBPm GBPm
----------------------------------------------------- ---------- ----------
By source
Fee based revenue 1,271 1,205
Spread/risk margin 505 359
----------------------------------------------------- ---------- ----------
Total income 1,776 1,564
Acquisition expenses (292) (325)
Maintenance expenses (834) (800)
Group corporate centre costs (47) (50)
Capital management 175 74
Share of joint ventures' and associates'
profit before tax 26 17
Other 96 64
Operating profit before tax 900 544
----------------------------------------------------- ---------- ----------
Diluted operating EPS 32.4 19.8
----------------------------------------------------- ---------- ----------
Diluted EPS 29.5 12.9
===================================================== ========== ==========
2012 2011
Business segment performance GBPm GBPm
----------------------------------------------------- ---------- ----------
UK and Europe operating profit before tax 419 266
Retail - new fee business profit contribution(3) 54 10
Retail - old fee business profit contribution(3) 179 186
Corporate profit contribution(3) 88 49
Spread/risk profit contribution(3) 94 66
Indirect expenses and capital management (129) (155)
Other 96 64
UK operating profit before tax 382 220
Europe operating profit before tax 37 46
----------------------------------------------------- ---------- ----------
Standard Life Investments operating profit
before tax 145 125
----------------------------------------------------- ---------- ----------
Canada operating profit before tax 355 187
----------------------------------------------------- ---------- ----------
Asia and Emerging Markets operating profit/(loss)
before tax 5 (6)
----------------------------------------------------- ---------- ----------
Other financial highlights 2012 2011
----------------------------------------------------- ---------- ----------
IGD surplus GBP4.1bn GBP3.1bn
Embedded value GBP8,138m GBP7,428m
Dividend per share 14.70p 13.80p
IFRS profit after tax attributable to equity
holders of Standard Life plc GBP698m GBP298m
----------------------------------------------------- ---------- ----------
For more information please read Section 1.8 - Basis of preparation and the reconciliation of consolidated operating profit for the period in Section 2 of the Preliminary Results 2012.
Group performance
2012 has seen us achieve improvements in performance and deliver value for our customers and shareholders.
Group operating profit increased by 65% to GBP900m (2011: GBP544m). The result benefited from growth in fee based revenue reflecting both higher market levels and the demand for our fee based propositions. In the UK, we reduced both unit and absolute costs, spread/risk margin benefited from a 38% increase in gross inflows and we recognised GBP96m from a professional indemnity insurance claim. Operating profit in Canada benefited from assumption changes of GBP91m as well as the impact of specific management actions of GBP153m relating to the previously announced profit on disposal of real estate and the renegotiation of a reinsurance agreement as we de-risked our balance sheet. We are pursuing additional management actions in 2013 of approximately half the amount achieved in Canada in 2012. The 2011 result included a GBP64m benefit following the change in the basis of future pension increases in the UK staff pension scheme. IFRS profit after tax attributable to equity holders increased to GBP698m (2011: GBP298m).
Group assets under administration increased by 10% to GBP218.1bn while Standard Life Investments third party assets under management increased by 16% to GBP83.0bn. These record asset levels benefited from positive market movements and positive, although lower, net flows into our newer style fee based propositions. Notably, Standard Life Investments had another strong year with third party net inflows of GBP6.1bn (2011: GBP4.3bn) despite the loss of a single low revenue yield mandate of GBP1.8bn following a change in a client's pension scheme strategy.
EEV operating profit before tax increased by 13% to GBP1,116m, primarily driven by higher profit from back book management of GBP413m (2011: GBP170m) which benefited from management actions in UK and Canada. This increase was partly offset by lower expected return from existing business as a result of lower opening discount rates and higher efficiency gains in 2011 which included the benefit of actions to reduce current and future investment expenses.
EEV operating capital and cash generation has increased by 68% to GBP734m, including a higher contribution from back book management of GBP389m (2011: GBP82m) and lower new business strain.
The Board have proposed a final dividend of 9.80p per share (2011: 9.20p), an increase of 6.5%, making a total for the year of 14.70p (2011: 13.80p). The Board have also proposed a special dividend of 12.80p per share to be paid at the time of the final dividend. The Group will continue to apply its existing progressive dividend policy taking account of market conditions and the Group's financial performance.
Business highlights
Our goal is to drive shareholder value through being a leading customer-centric business focused on long-term savings and investments propositions in our chosen markets. This is underpinned by a simple business model: maximising revenue, increasing assets and lowering unit costs whilst optimising the balance sheet to maximise returns for our shareholders.
During 2012 we've made good progress in each of our businesses. Growth in revenue reflects on-going customer demand for our propositions in what remains a challenging economic environment while continued work on reducing costs across the Group has enabled us to increase the operating leverage within the business, in turn driving a significant improvement in profitability.
Strong UK performance
-- UK operating profit before tax, excluding GBP96m from a professional indemnity insurance claim in 2012 and pension scheme release of GBP64m in 2011, up 83% to GBP286m (2011: GBP156m)
-- UK acquisition expenses improved to 133bps (2011: 144bps) and maintenance expenses improved to 31bps (2011: 34bps)
-- The number of adviser firms on Wrap increased by 14% to 1,137 and our SIPP proposition continues to perform well with an 18% increase in customers and AUA up 17% to GBP19.6bn
-- Successfully launched a Master Trust for employers in the UK, helping to secure a growing pipeline of corporate business with an increasing number of employers choosing Standard Life investment solutions
-- MyFolio has attracted assets of GBP2.2bn since launch in October 2010 and Standard Life Wealth was recognised, in 2012, as the fastest growing provider of discretionary investment management services in the UK
Record Standard Life Investments third party funds under management
-- Average fee revenue yield from third party business increased to 40bps (2011: 37bps)
-- Standard Life Investments increased its distribution in the US through John Hancock Mutual Funds
-- Continuation of strong investment performance over all key time periods
Strong operating profit result in Canada reflecting effective back book management
-- Canada increased fee business net inflows by 32% and market share in both retail and corporate markets
-- Expanded our range of mutual funds to help customers deal with low interest rates and market volatility
-- Significantly expanded investment options for employers launching target date funds, revamping our Avenue portfolio products and expanding offering on our Quality & Choice investment platform
Continued progress in Asia and Emerging Markets
-- Opened new branches in Singapore and Dubai to meet the needs of an internationally mobile workforce in those regions
-- Increased distribution capability in China and increased share of the individual private market in India to 17%(4)
-- JVs contributed GBP8m to operating profit before tax reflecting the progress made by HDFC Life in creating a leading and profitable insurance business in India, reinforcing its number two position in the individual private market
Outlook
Our UK business remains well positioned to benefit from regulatory, market and demographic changes. Our newer style propositions are gathering momentum with on-going demand for investment solutions from customers, their advisers and employers. The pipeline of corporate business secured but not yet transitioned continues to grow. Standard Life Investments remains focused on expanding its investment capabilities and geographic reach. Its pipeline of institutional business remains strong. Canada continues to build on momentum in its fee based propositions. Our Asia and Emerging Markets business is well positioned for growth in the attractive international markets in which it operates.
Overall, whilst the market remains competitive, our business model, propositions, distribution capability and strong balance sheet mean we are confident we can deliver on-going improvements in value for our customers and shareholders.
Business segment performance
UK and Europe(5) Standard Life Investments
Strategy We continue to strengthen our leading We remain very well positioned to
long-term savings and investment business deliver profitable growth. We are
by providing high quality innovative increasing our domestic and global
propositions and investment solutions presence and expertise across a range
combined with strong customer service of asset classes while delivering
and a highly scalable business model. consistently strong investment performance
Our strong market positions, along and strengthening relationships with
with demographic and regulatory changes our distribution partners. We also
in the UK such as auto enrolment and continue to leverage our investment
RDR, provide us with significant opportunities expertise to maximise opportunities
to drive profitable growth across and revenues for the wider Group.
our business in UK and Europe.
------------ -------------------------------------------------------------- -------------------------------------------------------------
Operating 2012 2011 2012 2011
profit GBPm GBPm GBPm GBPm
------------------------- ------ ------ -------------------------- ------ ------
Fee based revenue 831 798 Fee based revenue 408 368
Spread/risk margin 112 78 Maintenance expenses (281) (258)
------------------------- ------ ------ Share of joint ventures'
Total income 943 876 and associates' profit
Acquisition expenses (202) (226) before tax(6) 18 15
Maintenance expenses (461) (459) Operating profit before
Capital management 43 11 tax 145 125
Other 96 64 Interest and exchange
------------------------- ------ ------ rate movements - 1
Operating profit before -------------------------- ------ ------
tax 419 266 Earnings before interest
------------------------- ------ ------ and tax (EBIT) 145 126
-------------------------- ------ ------
------------
* Operating profit up 58% driven by a strong UK * Operating profit and EBIT increased by 16% and 15%
performance with all parts of the business respectively
contributing to growing profitability
* Fee based revenue up 11% driven by strong net flows,
* Includes GBP96m benefit in respect of the resolution particularly into higher margin propositions
of a professional indemnity insurance claim
* Average fee revenue yield from third party business
* UK operating profit before tax, excluding GBP96m from increased to 40bps (2011: 37bps)
a professional indemnity insurance claim in 2012 and
pension scheme release of GBP64m in 2011, up 83% to
GBP286m * Maintenance expenses expressed as a proportion of
average AUM remained unchanged at 17bps despite
ongoing development of our investment capability and
(2011: GBP156m) expanding distribution and geographic reach
* Total income up 8% reflecting strong growth in assets
and improved annuities performance
* Share of profit of HDFC AMC, which remains the
largest mutual fund company in India with AUM of
* Ongoing reduction in unit costs: UK acquisition GBP11.3bn, has been stated on a pre-tax basis for th
expenses 133bps (2011: 144bps); UK maintenance e
expenses 31bps (2011: 34bps) first time
------------ -------------------------------------------------------------- -------------------------------------------------------------
AUA
and * Total AUA grew by GBP11.6bn or 9% to GBP143.4bn * Third party AUM increased by GBP11.2bn or 16% to
flows GBP83.0bn
* Robust fee based retail net inflows into higher
margin propositions * Third party net inflows of GBP6.1bn representing 8%
of opening third party AUM
* Positive net flows in Germany and Ireland
* Unbroken record of positive annual third party net
flows since inception
* Growing corporate pension pipeline and increased
take-up of Standard Life investment solutions
* Overseas clients accounted for 62% of third party net
inflows, with net flows from US of GBP1.8bn
* In 2012, Standard Life Wealth was recognised as the
fastest growing provider of discretionary investment
management services in the UK with AUA up 86% to * Increased institutional client base in UK and Europe
GBP1.8bn by 5% and achieved number two position in UK retail
market by net retail sales and a market share of 18%
* MyFolio AUA up 142% to GBP2.2bn
* Annuity gross inflows up 38% to GBP632m
------------ -------------------------------------------------------------- -------------------------------------------------------------
Operational
highlights * Delivered RDR-ready adviser and consultancy charging, * Continued to deliver strong investment performance
providing adviser firms with leading levels of and our money weighted average for third party assets
support throughout this transition is well above median over all key time periods
* Secured 137 new schemes and 118,500 employees joined * Increased Global Emerging Markets capability with the
our corporate pension schemes during the year launch of equity and debt funds
* Successfully launched our Corporate investment * John Hancock GARS fund awarded US rookie fund of the
proposition and Master Trust year by the Wall Street Journal
* Agreement with RBS Group to provide a proposition * AUM across the MyFolio fund range of GBP2.2bn and
combining both our platform technology and range of agreement to provide risk-based funds to RBS Group
risk-based investment solutions to their private private banking
banking clients
* Streamlined and increased our corporate pension
enrolment and processing capacity
------------ -------------------------------------------------------------- -------------------------------------------------------------
Canada Asia and Emerging Markets(5)
Strategy We continue to grow our fee based business, We are focused on delivering profitable
capitalising on the opportunities created growth through our two joint ventures, our
by demographic and market changes. We are offshore business and through the expansion
achieving this through providing innovative of our retail savings and investments in
retirement and investment solutions as well Asia and the Middle East. The expansion
as leading levels of customer service. We into two new attractive international and
continue to focus on maximising the value offshore wealth management markets leaves
of our back book of spread business, improving us well placed to leverage our existing
its profitability, capital efficiency and offshore capability. We continue to work
risk exposure. with our joint venture partners on developing
our businesses in India and China.
------------ ----------------------------------------------------------- -----------------------------------------------------------
Operating 2012 2011 2012 2011
profit GBPm GBPm GBPm GBPm
------------------------ ------ ------ ------------------------------- ----- -----
Fee based revenue 172 166 Fee based revenue 54 45
Spread/risk margin 393 281 Acquisition expenses (11) (21)
------------------------ ------ ------ Maintenance expenses (46) (32)
Total income 565 447 Total wholly owned (3) (8)
Acquisition expenses (79) (78) India and China JV businesses 8 2
Maintenance expenses (240) (220) ------------------------------- ----- -----
Capital management 109 38 Operating profit before
Operating profit before tax/(loss) 5 (6)
tax 355 187 ------------------------------- ----- -----
------------------------ ------ ------
* Operating profit up 90% to GBP355m reflecting good * Operating profit up to GBP5m driven by progress from
operating performance, effective back book management both wholly owned and joint venture businesses
and timely disposal of property assets
* Fee based revenue in our wholly owned operations
* Fee based revenue increased by 4% in constant increased by 20% as a result of higher AUA in the
currency as a result of higher AUA period
* Spread/risk margin increased to GBP393m and included * Higher profit from JV businesses reflects the
the impact of positive assumption changes of GBP91m, progress made by HDFC Life in creating a leading and
and GBP81m from previously announced specific profitable insurance business in India, reinforcing
management actions its number two position in the individual private
market
* Capital management included gains of GBP72m from the
previously announced specific management actions
* Increase in expenses reflected on-going investment in
our propositions and growth of our business
------------ ----------------------------------------------------------- -----------------------------------------------------------
AUA
and * Total AUA increased by 7% to GBP27.8bn driven by net * AUA in the wholly owned businesses increased by 32%
flows inflows into fee based propositions of GBP0.8bn and to GBP3.3bn
positive market movements which offset expected
outflows from the spread/risk business
* Net inflows in wholly owned businesses of GBP0.6bn
represent 24% of opening AUA
* Strong position in group segregated funds with fee
based gross inflows up 14% to GBP1.9bn and net
inflows of GBP500m * AUA in the joint ventures increased by 25% to
GBP1.5bn, due to net inflows of GBP0.2bn and positive
market movements partly offset by adverse impact of
* Momentum in sales of retail segregated funds with exchange rate movements
market share up to 9.1% (2011: 6.7%) and net flows up
66% to GBP331m
* Increase in demand for mutual funds resulted in gross
inflows up 27% in constant currency
------------ ----------------------------------------------------------- -----------------------------------------------------------
Operational
highlights * Created new fund options to meet customer needs in a * Operating across the value chain by offering Standard
low interest rate and volatile market environment Life Investment solutions including GARS and MyFolio
on our International Bond, and exploring further
opportunities for greater collaboration in Asia
* Developed Pooled Registered Pension Plan solution and
wider offering aimed at small and medium size
employers * New proposition launched in Hong Kong to cater to the
needs of internationally mobile clients while our
offshore business launched RDR compliant versions of
* Launched an Advisor Portal to support the needs of our propositions into the UK to access opportunities
advisers created through RDR
* Developed new strategic asset allocation options for * Established presence in Singapore and Dubai,
employers, launching target date funds, revamping our leveraging our existing capability and infrastructure
Avenue portfolio products and expanding offering on
our Quality & Choice investment platform
* Increased distribution capability in China and
increased share of the individual private market in
India to 17%(4)
For a PDF version of the full Preliminary Results Announcement, including this Press Release, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/4310Z_-2013-3-6.pdf
For further information please contact:
Institutional Equity Investors Retail Equity Investors
0207 872 4124 / 07738
300 878
Lorraine Rees 0131 245 8028 / 07515
Jakub Rosochowski 298 608 Capita Registrars 0845 113 0045
Media Debt Investors
0131 245 4016 / 07872
Nicola McGowan 191 341 Scott Forrest 0131 245 6045
0131 245 6165 / 07712
Barry Cameron 486 463 Nick Mardon 0131 245 6371
Susanna Voyle 020 7353 4200 / 07980
(Tulchan Communications) 894 557
Newswires and online publications
We will hold a conference call for newswires and online publications on 7 March at 06:50 (UK time) and a second media call at 08:30 (UK time). Participants should dial +44 (0)20 3059 8125 and quote Standard Life 2012 Preliminary Results. A replay facility will be available for both calls for seven days after the event. To access the replays please dial +44 (0)121 260 4861 and use pass code 7950284# for the 06:30 call and 8291090# for the 08:30 call.
Investors and Analysts
A presentation for investors and analysts will take place at 09:30 (UK time) at Deutsche Bank, Winchester House, 1 Great Winchester Street, London EC2N 2DB. There will also be a live webcast and teleconference at 09:30 (UK Time), both of which will have the facility to ask questions at the end of the formal presentation. Participants should dial +44 (0)20 3059 8125 and quote Standard Life 2012 Preliminary Results.
Notes to Editors:
1 Operating profit is IFRS profit before tax adjusted to remove
the impact of market driven short-term fluctuations in investment
return and economic assumptions, restructuring costs (including
RDR and Solvency 2 restructuring programme), impairments of intangible
assets, amortisation of intangible assets acquired in business
combinations, profit or loss on the disposal of a subsidiary,
joint venture or associate and other significant one-off items
outside the control of management.
2 In order to be consistent with the presentation of new business
information, certain products are included in both long-term
savings and investments AUA and net flows. Refer to Supplementary
information 4.5 - Group assets under administration and net flows
for further information.
3 Profit contribution is defined as revenue less directly attributable
expenses.
4 Share of individual private market for nine months to 31 December
2012.
5 The Germany and Ireland domestic businesses have now been combined
with the UK to create UK and Europe. Asia and Emerging Markets
includes Hong Kong, the offshore business in Ireland and the
joint ventures in India and China.
6 The share of profit of HDFC Asset Management is included on a
pre-tax basis for the first time. This change has contributed
GBP5m to the increase in operating profit.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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