Standard Life (SDLF) H2 2025 earnings summary

Executive summary

• Achieved strong operational and financial progress two years into a three-year strategy, with material advances in product suite, digital engagement, and cost savings.

• Delivered strong profitable growth, strengthening the balance sheet and maintaining a leading position in UK retirement savings and income markets.

• Strategic priorities of growth, optimisation, and enhancement drove improved customer engagement, operational efficiency, and product innovation.

• Delivered robust customer outcomes, with high satisfaction and engagement scores, and expanded market share in key segments.

• On track to achieve 2026 targets, supporting robust shareholder returns and financial flexibility.

Financial highlights

• Operating cash generation (OCG) grew 5% to £1,474m; total cash generation reached £1,711m.

• IFRS operating profit rose 15% to £945m, driven by asset growth and £180m run-rate cost savings.

• Solvency leverage ratio improved to 33%; solvency cover increased to 176%.

• Dividend per share grew 2.6% to 55.40p.

• Free cash flow doubled from 2023 to £1bn, covering a growing dividend of about £550m.

Outlook and guidance

• On track to achieve circa £1.1bn operating profit target in 2026.

• Confident in mid-single-digit OCG growth long-term and targeting £5.1bn total cash generation over 2024–2026.

• Deleveraging to 30% leverage ratio by end of 2026; excess cash to be deployed for growth, M&A, or shareholder returns thereafter.

• Annual run-rate cost savings of £250m expected by end-2026.

• Progressive and sustainable dividend policy maintained, with excess cash to be allocated to highest-return opportunities.