Standard Life operating profit jumps 18% in first half

Standard Life posted an 18% increase in operating profit before tax for the first half thanks to diversification, as its assets under management grew.

Operating profit before tax rose to £341m, with assets under management up 7% to £328bn, helped by gross inflows into its growth channels of £20.6bn and net inflows of £4.1bn

Fee based revenue was up 4% to £794m, representing 93% of total operating income, with revenue across growth channels 8% higher at £577m.

The insurer and asset manager declared an interim dividend of 6.47p per share, up 7.5% on the first half of last year.

Chief executive officer Keith Skeoch said: “Standard Life continues to make good progress towards building a world-class investment company, against a backdrop of volatile investment markets, by growing assets, profits, cash flows and returns to shareholders.

"Despite elevated uncertainty we are benefiting from our strong long-term relationships with a broad range of clients and customers who reacted in different ways to the changing market environment. The increase in the stake in HDFC Life and the proposed combination with Max Life will increase our exposure to the attractive and fast growing Indian market, while the agreement to acquire Elevate will strengthen our leading position in the advised platform market."

Nicholas Hyett equity analyst at Hargreaves Lansdown, said: "Standard Life is benefiting from the ongoing shift from defined benefit to defined contribution pension schemes, and auto-enrolment. The shares took a pummelling following the UK vote to leave the EU, along with the rest of the sector, but have recovered much of those losses as investors relaxed about the state of balance sheets across the industry."

At 1100 BST, shares were up 4.4% to 332.40p.