Standard Life Aberdeen swings to a loss in H1 due to COVID-19

Standard Life Aberdeen swings to a loss in H1 due to COVID-19
Written by:
Wajeeh Khan
7th August, 11:18
Updated: 7th August, 11:19
  • Standard Life Aberdeen swings to £498 million of pre-tax loss in H1 due to COVID-19.
  • The company’s board declares a 7.3 pence per share of interim dividend.
  • Aberdeen concludes H1 with £511.8 billion of assets under management & administration.

Standard Life Aberdeen (LON: SLA) revealed to have swung to a loss in the fiscal first half on Friday. The company attributed its dovish performance to the Coronavirus pandemic that resulted in higher costs in recent months.

Shares of the company remained almost flat in premarket trading but have gained roughly 1% on Friday so far. At 266 pence per share, Standard Life Aberdeen is currently more than 20% down year to date in the stock market after recovering from an even lower of 174 pence per share in March. Here’s how you can invest online and start trading on the stock market.  

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Standard Life Aberdeen reports £498 million of pre-tax loss

In the six months that concluded on 30th June, Aberdeen reported £498 million of pre-tax loss that came in significantly weaker than £629 million of profit in the same period last year.

In terms of adjusted pre-tax profit, the investment company registered £195 million versus the year-ago figure of £280 million that translates to a 30% decline on a year over year basis. Experts, on the other hand, had forecast an even lower £179 million for Aberdeen in H1. It’s peer, Hargreaves Lansdown, also reported its full-year pre-tax profit to have tanked 24% on Friday.

Fee-based revenue, the Edinburgh-headquartered company said, tanked to £706 million in H1 from £815 million in the comparable period of 2019. As of 30th June, Aberdeen had £511.8 billion of assets under management and administration. In comparison, it had started the year 2020 with a higher £544.6 billion of assets under management and administration.

Experts forecast for fee-based revenue was at £717 million and for assets under management and administration at £506 billion. Standard Life Aberdeen’s new CEO, Martin Gilbert, said last week that he will commit to more deals despite the pandemic.

The company’s board declares a 7.3 pence per share of interim dividend

The company’s board declared a 7.3 pence per share of interim dividend on Friday that remained largely unchanged as compared to last year. Analysts were expecting Aberdeen to announce a lower 6.8 pence a share of interim dividend. According to Standard Life Aberdeen:

“While revenue outlook remains challenging for the industry, we continue to focus on what we can control. We will continue to diversify our revenue and reshape our cost base to ensure it is future fit.”

Standard Life Aberdeen is currently valued at £5.98 billion and has a price to earnings ratio of 30.37.

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