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Standard Life sees group profits jump 10 per cent

Standard Life has seen a 10 per cent rise in group profit before tax for the first half of 2010.

Profit before tax stands at £182m for the six months to June 30, 2010, compared to £166m for the same period in 2009.

The group also reported a 71 per cent increase in net inflows for the first half of 2010, totalling £5.3bn, this compares to £3.1bn in 2009. Group assets under administration rose 5 per cent to £179m.

Standard Life UK reported pre-tax profits of £76m in the first half of 2010, a 5 per cent fall on the £80m made in 2009.

The group saw a £404m net outflow in the UK in the first six months of 2010, down from £1.1bn of outflows in the first half of 2009. Standard Life says the fall is down due to increased Sipp and mutual fund inflows. This was partly offset by increased outflows across all pension products mainly due to the change in the minimum age at which customers can take retirement benefits from 50 to 55, which came into force in April 2010. Standard Life says the outflows fell once the rule came into effect.

Standard Life Investments reported that UK mutual fund sales more than doubled to £713m for the six months of 2010, this compares to £313m of sales in 2009. Third party inflows jumped to £4.7bn, a 52 per cent increase over the £3.1bn in 2009.

In March 2010, Standard Life acquired the remaining 75 per cent stake in threesixty, a move the group says will strengthen its position in the intermediary market. The group says it has commenced work with threesixty to develop the business for the benefit of their independent financial adviser client firms.

Standard Life chief executive David Nish says: “This strong set of results demonstrates the progress we have made as a business and the potential for increased profits and dividends as we invest for growth.

“We operate in markets which have exciting growth opportunities for Standard Life. In particular, we are well positioned to help our customers meet the challenges of the savings gap in the UK.”

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