Standard Life Aberdeen warns on Brexit and says the economy could be scarred by coronavirus

Asset management giant Standard Life Aberdeen today warned the economy could be scarred and that Brexit remains a deep uncertainty.

The City stalwart said that coronavirus could cause a long term loss of output, labour market scarring and lower real interest rates.

The company said: "The COVID-19 pandemic and associated shutdowns of economic activity have precipitated significant negative growth shocks across the world. However, the contraction phase of the crisis has also been comparatively short-lived and we anticipate an element of recovery as restrictions are lifted.

"Nevertheless, the long-term consequences of the crisis will be profound, including a longer-term loss of output, labour market scarring, lower real interest rates, and an altered balance between monetary and fiscal policy. In addition, the Brexit process remains in transition and remains a further source of uncertainty."

Despite the warnings the company maintained its half year dividend.

The company will pay out a dividend of 7.3p, the same as this time last year. It is one of few FTSE 100 companies to have not slashed or canned its dividend payout due to coronavirus.

Over the first six months this year the company's fee revenue took a hit. Revenue came in at £706 million, down from £815 million in the same period 2019.

The firm remained active during lockdown and said that despite remote working it still managed to launch 18 new funds during the period.

Assets under management also fell over the period from £544.6 billion to £511.8 billion.