Financial results

Half year results 2017

  • Assets under administration (AUA) increased by 1% to £361.9bn. Gross inflows were resilient at £20.7bn (H1 2016: £21.8bn) but redemptions increased to £24.4bn (H1 2016: £20.9bn) resulting in net outflows of £3.7bn.
  • Growth channels AUA up 3% to £244.0bn with net outflows of £0.6bn, including £5.6bn from GARS, offset by an increase of 32% in net inflows into other products to £5.0bn (H1 2016: £3.8bn) including:
    • Institutional and Wholesale benefiting from client and channel diversification with net inflows ex. GARS of £1.2bn (H1 2016: £1.2bn)
    • Workplace and Retail net inflows of £4.2bn (H1 2016: £2.8bn) included record net inflows on to our adviser platforms driving total platform AUA up 11% to £49.2bn (FY 2016: £44.2bn)
  • Third party funds above benchmark over 1 year: 85%; 3 years: 74%; 5 years: 85%
  • Fee based revenue up 5% to £836m with growth channels revenue up 7% to £616m (H1 2016: £577m)
  • Cost/income ratio stable at 62% (FY 2016: 62%) and excluding 1825 and Elevate down 1ppt to 60%
  • Operating profit before tax up 6% to £362m driven by 13% increase in profit excluding spread/risk
  • Underlying cash generation up 1% to £256m and strong holding company cash position of £0.8bn(FY 2016: £0.9bn; H1 2016: £0.8bn)
  • Announced proposed IPO of our Indian associate HDFC Life with offer for sale of up to 5.43ppts of our 35% stake
  • Interim dividend per share up 8.2% to 7.00p
  • Proposed merger with Aberdeen Asset Management PLC ("Aberdeen") expected to be effective on 14 August 2017
  • Combined leadership teams working well together to ensure full business readiness for "Day 1"

Media

A conference call for the media took place on Tuesday 8 August. A replay of the call will be available for seven days after the event. To access the replay please dial +44 (0) 207 660 0134 followed by the pass code 7140912.

Investors and Analysts

The half year results 2017 analyst and investor presentation took place on Tuesday 8 August. A replay facility will be available for seven days after the event. To access the replay please dial +44 (0) 207 660 0134 followed by pass code 6715251.

To view the archive webcast, please click on the following link half year results 2017.