ABID HUSSEIN | JEFFERIES
The investment spend over the last 18 months is starting to deliver netflows ahead of expectations. Standard Life is also benefiting from a first-mover advantage in the pre-RDR market by increasing its market share in SIPPs. Our concern remains that spend will remain high beyond 2012 to defend its market share.
BARRIE CORNES | PANMURE GORDON
The effect of the transformational programme is finally starting to come through. In Canada, we understand around 50 per cent of the benefit of specific management actions in H1 are likely to be sustainable. We expect further cost savings to come through in the next few reporting seasons and 2012 onwards.
KEVIN RYAN | INVESTEC
All components of this result were better than our estimate, but the real driver was Canada, where underlying operating profit places it on a par with the UK in terms of profit contribution. The market for new business sales remains challenging, but Standard Life’s differentiated UK offering beat our forecast.