Standard Life interim 2012 results

DividendMax Ltd.

Standard Life interim 2012 results

Chief Executive's overview

"These results show that Standard Life is performing well. We have delivered increased profits, cash flow and dividends and we are achieving ongoing improvements in operational and financial performance. The UK results, where profits benefited from higher income and significantly lower costs, demonstrate the strength and scalability of our propositions and our brand. The industry is undergoing a period of significant change and we believe that this brings opportunity. We are well prepared for the regulatory and market changes on the horizon, and have invested to make sure we are even better placed to meet the needs of our customers and their advisers."

David Nish, Chief Executive

Delivering value for customers and shareholders

We have made significant progress in enabling us to deliver sustainable growth and to meet the changing needs of our customers and their advisers. Against the backdrop of challenging market conditions and the difficult macro-economic environment, we have continued to innovate and develop our propositions and platforms, setting us up to capitalise on the many opportunities that exist in our chosen markets.

We have aligned our business with the markets in which we wish to operate and remain very confident that we have the capabilities and skills required to deliver on our strategy.

The first half of 2012 has seen us achieve improvements in performance and deliver value for our customers and shareholders. Some highlights include:

Responding to the changing needs of our customers and their advisers

Scale and momentum in the retail business and well positioned for the Retail Distribution Review

GARS and Standard Life Wealth continue to meet the demands of customers for investment solutions

Launched a range of investment solutions for employers following success of MyFolio

Expanded corporate offering with ISAs and an extended corporate investment proposition for employees

Group savings and retirement target date funds launched in Canada, offering a range of solutions that are unique in the Canadian marketplace

We have launched a new regular savings product in Ireland and continue to develop our offering

Increasing assets

The MyFolio range of funds has attracted assets of approximately £1.5bn since launch in October 2010 and GARS assets exceed £17bn

SIPP proposition continues to perform well with assets increasing to £18bn

Number of adviser firms on our Wrap platform up 17% to 1,087 with an average of £8.8m AUA per firm

Our momentum in UK corporate sales has continued with 71 new schemes secured and now providing corporate pensions to almost 1.2m employees

Reducing our unit costs

Reductions in unit and absolute costs reflect the scalability of our business and improvements in efficiency

Achieved our target of £100m annual margin improvement with ongoing efforts to reduce costs and improve efficiency

Expanding our global reach

New product launched in Germany and MyFolio range of funds now available in Ireland

Standard Life Investments continues to expand its distribution and investment capability, particularly in the United States

Increased market share for the joint venture businesses in India and China

Outlook

Our industry in the UK is undergoing a period of significant change. Over the past few years we have built a scalable business that is capitalising on the opportunities that exist in our chosen markets. Combined with its leading market positions, we expect the UK business to continue to perform well.

Standard Life Investments has opportunities to continue to expand its capabilities and reach, both in the UK and internationally. While the low interest rate environment in Canada presents some challenges, the outlook for the Canadian economy remains steady. Following the appointment of a new CEO in Canada during February, we expect this business to drive improved operating performance as we concentrate our expertise on opportunities in long-term savings and investments. Our international business is focused on executing our overseas strategy following the creation of an Asia and Emerging Markets business.

Overall, whilst the market environment is challenging and those conditions look set to continue, our business model, leading market positions and strong balance sheet, will allow us to continue to deliver ongoing improvements in value for customers and shareholders.

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