Standard Life (SDLF) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 financial performance, with operating cash generation up 19% to £647m and total cash generation at £950m, progressing toward three-year strategic targets for cash, capital, and earnings.

• Focused on building the UK's leading retirement savings and income business, with growth in both Pensions & Savings and Retirement Solutions, supported by customer-centric solutions and digital transformation.

• Delivered profitable growth, deleveraging, and continued investment in innovation, operational efficiency, and cost savings.

• On track to meet or exceed 2024 and 2026 financial targets, supporting a progressive and sustainable dividend policy.

Financial highlights

• Operating cash generation rose 19% year-on-year to £647m, with total cash generation of £950m in H1 2024.

• IFRS-adjusted operating profit increased 15% to £360m; interim dividend per share up 2.5% to 26.65p.

• Statutory IFRS loss after tax of £646m, mainly due to adverse economic variances from the hedging strategy.

• Shareholder capital coverage ratio at 168%, within the 140–180% target range; Solvency II leverage ratio at 35%.

• Assets under administration increased to £289bn, up 2% from FY 2023.

Outlook and guidance

• Confident in delivering at the top end of the £1.4bn–£1.5bn cash generation target for 2024 and on track for three-year target of £4.4bn.

• Targeting £900m IFRS adjusted operating profit, £1.4bn operating cash generation, and £250m annual run-rate cost savings by end-2026.

• Solvency II leverage ratio targeted at c.30% by end-2026, with further debt repayment planned.

• Progressive and sustainable ordinary dividend policy maintained.