Friday 7 August 2020 9:10 am

Standard Life Aberdeen profit hit by coronavirus and £25bn Lloyds withdrawal

Standard Life Aberdeen’s pre-tax profit slumped 30 per cent to £195m in the first half of 2020 after Lloyds withdrew £25bn in the peak of the pandemic.

Read more: Martin Gilbert: Coronavirus ‘multiple times worse’ than Black Monday for City

The figures

Fee-based revenue fell 13 per cent to £706m as clients pulled their money out to lower fee assets and Lloyds’ scheduled withdrawal of assets. That missed analyst expectations of £717m.

Adjusted profit before tax fell 30 per cent year on year as a result to £195m.

Meanwhile, assets under management and administration (AUMA) fell six per cent to £511.8bn. Lloyds’ tranche withdrawals of £24.9bn hurt AUMA, but Standard Life Aberdeen still beat a forecast of £506bn.

Net inflows totalled £100m over the six months to 30 June, and excluding Lloyds’ withdrawal, redemptions fell by 27 per cent to £38.1bn.

Gross inflows inched up five per cent to £38.2bn.

Shares were flat at 263.6p in early trading.

Read more: Standard Life Aberdeen offloads Boohoo stock over Leicester factory scandal

What Standard Life Aberdeen said

Chief executive Keith Skeoch said: “”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. Our foundations are firm, we have a strong balance sheet which enables us to both invest in our business and maintain our interim dividend of 7.3p.”

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.”