Standard Life Aberdeen profits fall amid coronavirus crisis

The Scottish investment company predicts turbulent markets for the remainder of the year

Article updated: 10 March 2020 10:00am Author: Ian Forrest

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  • Group expects turbulent markets for remainder of 2020 due to coronavirus outbreak
  • Results show 13% drop in revenue to £1.63bn and adjusted pre-tax profit down 10% to £584mn although assets under management rose 6% to £544.6bn
  • Investment performance improved in the second half of the year and net outflows reduced significantly from £40.9bn to £17.4bn
  • The market has responded positively to the news with the shares rising 2% in early trading, which after yesterday’s sea of red will be welcome news for investors
  • Recommendation: The prospective dividend yield of 9% is attractive and the shares remain a medium to higher risk ‘Hold’, but for investors looking to invest in the sector our preference remains Schroders

Asset management group Standard Life Aberdeen (SLA) said it expected markets to be turbulent during the remainder of 2020 due to the coronavirus outbreak. The company reported a 13% drop in revenue to £1.63bn and adjusted pre-tax profit down 10% to £584m, although assets under management rose 6% to £544.6bn. Investment performance improved in the second half of the year and net outflows reduced significantly from £40.9bn to £17.4bn. SLA said it had seen growing momentum across the business over the past six months and the dividend was maintained at the same level as last year.

The market responded positively to the news, with the shares rising 2% in early trading. The figures were ahead of market expectations, although the warning of turbulent markets over the rest of the year is clearly a concern, something many investors will have suspected already. Given all the external disruption, SLA is right to focus on what it can do internally and the increase in efficiency savings to an annualised £400m shows good progress. The fact that the dividend has been maintained is also reassuring for investors. The prospective dividend yield of 9% is attractive and the shares remain a medium to higher risk hold, but for investors looking to invest in the sector our preference remains Schroders.


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

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Ian Forrest

Investment Research Analyst

Ian’s background in investments, financial journalism and research has seen him advising private investors on equities and helping to manage portfolios. His qualifications include the Certificate in Financial Planning and the Chartered Institute for Securities & Investment’s Investment Advice Diploma.

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