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Royal London profits down 38%

Royal London’s pre-tax profit fell 38 per cent to £86m in the first half of the year, while new assets under administration on the Ascentric platform fell 21 per cent to £587m.

The group’s interim results for the six months to 30 June, published today, show its pre-tax profits fell from £138m in the first half of last year.

Total new business was down 1 per cent from £1.79bn to £1.78bn.

While Ascentric’s new assets under administration fell over the period, total assets rose 16 per cent to £4.3bn, up from £3.7bn at the end of 2011.

Scottish Life saw new business fall 3 per cent from £1.24bn in H1 last year to £1.2bn this year.

Royal London 360 saw new business fall 8 per cent to £192m, down from £209m in the first half of last year.

Bright Grey and Scottish Provident intermediary new business rose 46 per cent from £152m in H1 last year to £221m this year.

Royal London Asset Management saw funds under management rise 2 per cent to £44.9bn, up from £44bn at the end of 2011. But net new business saw outflows of £310m, compared to inflows of £583m in the first half of last year.

Royal London group chief executive Phil Loney (pictured) says: “There has been a significant uplift of advisory firms joining Ascentric, our wrap platform, where assets under administration are now well over £4bn.

“Royal London Asset Management saw funds under management rise to £44.9bn despite experiencing a net outflow of funds from fixed interest assets. We have also recently won a number of new mandates from a range of clients and we expect significant inflows over the remainder of the year. Investment performance remains strong overall.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. This is simply what happens when the regulators make distribution so cripplingly expensive. It’s not just RDR but FSA, FOS & MAS fees and, of course, the bottomless pit that is the FSCS.

    Financial retail cannot be viable again until the regulators are made to live in the real world.

    They have sucked the life out of financial services without giving any tangible benefit to consumers.

  2. Even I didnt think balance sheets would start to collapse just yet !

    Stand by for the backlash against RDR when the balance sheets collapse further. A claim for restriction of trade ? only a matter of time

    Like I said previously, pay for distribution of products and services – what is the world coming to !!

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