Aberdeen Group (ABDN) H1 2024 earnings summary

Executive summary

• Adjusted operating profit rose 1% to £128m in H1 2024, with IFRS profit before tax at £187m, reversing a £169m loss in H1 2023, aided by an £88m gain from the sale of the European Private Equity business.

• Transformation programme is progressing, targeting at least £150m in annualized cost savings by end-2025, with £60m expected to benefit 2024 results.

• Strategic focus remains on efficiency, profitability, and net capital generation to support sustainable growth and shareholder returns.

• Strong balance sheet and liquidity underpin investment in growth, resilience, and dividend stability.

• AUMA increased 2% to £505.9bn, with total net inflows of £0.8bn, a significant improvement from prior outflows.

Financial highlights

• Adjusted operating profit was £128m, up 1% year-over-year; adjusted operating expenses down 9% to £539m.

• Net operating revenue was £667m, down 7% year-over-year, mainly due to outflows and business disposals.

• IFRS profit before tax was £187m, compared to a loss of £169m in H1 2023, driven by gains on disposals.

• Adjusted capital generation was £144m (up 1%), and net capital generation more than doubled to £104m.

• Interim dividend maintained at 7.3p per share, covered 1.11x by adjusted capital generation.

Outlook and guidance

• Revenue margin in investments projected to contract further, below 22bps for FY 2024, reflecting asset mix changes.

• Group on track to deliver at least £150m of annualized cost savings by end-2025 and £60m in 2024.

• Cost guidance for FY 2024 set at less than £1,075m; focus remains on cost transformation, platform modernization, and growth investment.

• Market conditions remain challenging for active asset managers, but long-term UK savings and wealth growth expected.

• Adviser business to see a low single-digit revenue margin impact from repricing, with temporary outsourcing discounts ending.