Standard Life Aberdeen profits fall on lower fee income

Asset manager Standard Life Aberdeen reported a fall in adjusted full year profits as revenues fell due to lower fee income.

Fee based revenue fell 13% to £1.63bn, reflecting the impact of net outflows in 2018 and 2019. Underlying pre-tax profit, which stripped out one-off gains and losses from asset sales and write-downs, fell 10% to £584m.

The company said the outlook for markets and the wealth management industry in 2020 was “turbulent” given the additional complexity of the coronavirus.

Net outflows outflows slowed to £17.4bn from £41bn, excluding a tranche of withdrawals from Lloyds Banking Group.

Operating expenses by 4% to £1.3bn as the company continued to cut costs after the 2017 merger of Standard Life and Aberdeen Asset Management.

Chief executive Keith Skeoch said SLA was seeing growing momentum in the second half of the year across the business, with improved investment performance and flows.

“We remain on track to deliver targeted synergies and have identified more we can deliver as we continue to reshape the business and sustain resilience,” he said.

“The outlook for the markets and our industry in 2020 is turbulent with the additional complexity of Covid-19. Importantly we are focused on what we can control, namely delivering for our clients, customers, colleagues and shareholders; diversifying our revenues; investing for the future and maintaining financial discipline.”