headlines10 Aug 2021 08:45
Strong start to the year, creating momentum for our growth ambitions
· Fee-based revenue 7% higher and adjusted operating profit 52% higher than prior year which are the highest rates of growth since merger.
· Net outflows reduced to £5.6bn, including liquidity net outflows of £3.7bn. Excluding liquidity flows, which are volatile, net outflows were £1.9bn representing a significant improvement over prior periods and less than 10% of outflows at the low point in H2 2018.
· Consequently the impact on revenue from net outflows (excluding LBG) is less than 0.5% compared with 3% in H1 2020.
· AUMA of £532bn (FY 2020: £535bn) broadly flat as reductions due to flows and corporate actions were partially offset by positive market movements.
· Delivered improved operational leverage with cost/income ratio of 79%, 6ppts lower than prior year.
· Higher adjusted operating profits in all vectors - 61% higher in Adviser, 33% higher in Investments and Personal has recorded a small profit for first time.
· IFRS profit before tax of £113m, reflecting higher adjusted operating profit and significantly lower impairments than H1 2020.
· Adjusted diluted EPS of 7.0p is 3.7p higher, benefiting from the increase in adjusted profit after tax and the share buybacks in 2020.
· Adjusted capital generation increased by £73m to £176m, reflecting strong profit performance.
· Strengthened capital position with surplus regulatory capital increasing to £2.8bn (FY 2020: £2.3bn), including £0.7bn benefit from sale of 4.99% in HDFC Life.
· Interim dividend of 7.3p in line with our dividend policy.
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