Standard Life Aberdeen has announced that pre-tax profits plummeted 30% to £195m in its half-year result, as the asset management group was hit by the ongoing effects of Covid-19.
The group also reported revenues of £706m in the period, down 13% against the £815m reported the year prior, reflecting 2019 outflows, client preferences changing asset mix in the current environment, and Lloyds Banking Group tranche withdrawals.
In addition, the group swung to an IFRS pre-tax loss of £498m, largely driven by impairment charges of £1.05bn to cover bad debt amid the crisis.
Nonetheless, the group still maintained its dividend payments at 7.9p per share.
Keith Skeoch, CEO, said: “Despite exceptional circumstances we have delivered a resilient performance. In the first half of 2020 redemptions have slowed and net inflows have improved, excluding expected LBG withdrawals.
“Investment performance has been robust and we continue to deliver on our synergy commitments. There is no question that the impact of Covid-19 has played a role on our results today, and across our industry, particularly in relation to lower revenue.”
He added: “This is my last set of results as chief executive of Standard Life Aberdeen, following 21 years with the business – a period where I have seen the business evolve from a mutual life and pensions company to a capital-light global investment house. I am pleased to hand over a business with strong foundations, an enviable capital position, talented people, enduring relationships and big ambitions.”