St. James's Place (STJ) H1 2024 earnings summary

Executive summary

• Delivered strong H1 2024 performance with record funds under management (FUM) of £181.9bn, up 8% year-to-date and 14% higher on average than H1 2023, supported by robust net inflows and resilient client retention.

• Gross inflows rose 6% year-over-year to £8.5bn, with Q2 inflows up 18% sequentially; net inflows totaled £1.9bn.

• Underlying post-tax cash result was £205.2m, down 1% year-over-year due to charging structure costs, but up 11% when excluding these costs.

• Completed a comprehensive business review, refreshed strategy focused on growth, cost discipline, and enhanced client and adviser propositions.

• Launched a national brand campaign and improved regulatory dialogue.

Financial highlights

• IFRS profit after tax was £165.1m, up 2% year-over-year; EEV NAV per share rose 11% to £15.71.

• Net income from FUM increased 8% year-over-year, driven by higher average mature FUM.

• Interim dividend of 6.00p per share and a £32.9m share buyback announced.

• Solvency ratio for life companies at 164%, up from 162% at December 2023.

• EEV operating profit before exceptional items was £545.9m; EEV profit before tax was £1,229.0m, boosted by positive investment return variance.

Outlook and guidance

• Targeting mid- to high single-digit annual FUM growth and doubling underlying cash result from 2023 to 2030.

• Cost base to be reduced by £100m per annum by end-2026/2027, with cumulative net savings of £500m by 2030; about half of savings to be reinvested in technology, data, and client proposition enhancements.

• Cash result expected to accelerate from 2027 as structural changes to charging mature.

• Net income from FUM margin expected in the 54–56 bps range for 2024.

• Net investment in Asia and DFM expected to break even by 2027 and H2 2024, respectively.