Aberdeen Group (ABDN) H1 2025 earnings summary

Executive summary

• Strategic focus on becoming the UK's leading wealth and investments group, advancing transformation and operational improvements, and strengthening leadership in H1 2025.

• Transformation program on track, delivering £137m in annualized run rate savings by H1 2025, targeting at least £150m by year-end.

• Sustained growth in interactive investor, improved Adviser flows, and resilient Investments performance, with strong organic growth and efficiency gains.

• Group targets for 2026 include adjusted operating profit of at least £300m and net capital generation of ~£300m, with ongoing dividend support.

• H1 2025 performance aligned with expectations, showing resilience amid macroeconomic and geopolitical volatility.

Financial highlights

• Adjusted operating profit was £125m, down 2% year-over-year; IFRS profit before tax increased 45% to £271m, mainly due to Phoenix stake revaluation.

• Adjusted net operating revenue fell 6% to £628m; adjusted operating expenses fell 7% to £503m, driven by transformation savings.

• Net capital generation rose 7% to £111m; adjusted capital generation up 1% to £145m.

• Adjusted diluted EPS up 10% to 7.5p; interim dividend maintained at 7.3p per share.

• AUMA increased 1% to £517.6bn; net inflows excluding liquidity at £0.5bn.

Outlook and guidance

• Transformation savings of at least £150m annualized to be delivered by year-end 2025.

• FY 2026 targets: adjusted operating profit above £300m, net capital generation ~£300m.

• ii expected to sustain growth in customers, net flows, revenue, and profit; cash margin guidance for FY25 is 210–220bps.

• Adviser revenue margin expected at ~27bps for FY25, reflecting repricing.

• Investments revenue margin guided at ~20bps for FY25 due to asset mix changes.