Aberdeen Group (ABDN) H1 2026 earnings summary

Executive summary

• Achieved strong financial and operational performance in H1 2026, with adjusted operating profit up 21% year-over-year to £151m, driven by revenue growth and efficiency gains.

• Interactive Investor delivered record customer growth (up 14% to 525,000), net inflows (£6.8bn, up 66%), and AUMA growth (up to £108bn), reinforcing market leadership.

• Adviser segment maintained stable profitability with AUMA up 5% to £85bn, despite net outflows of £1.3bn, and focused on service improvements and strategic partnerships.

• Investments segment improved profitability by 9% to £38m, with AUM up 2% to £398bn, benefiting from lower costs, operational efficiency, and positive momentum in specialist areas.

• Group remains confident in meeting ambitious 2026 targets and is focused on sustainable, long-term growth beyond 2026.

Financial highlights

• Adjusted operating profit rose 21% to £151m; IFRS profit before tax reached £276m, reflecting investment gains and interest income.

• Net capital generation increased 47% to £163m, aided by revenue growth, efficiency, and pension surplus actions.

• Interim dividend maintained at 7.3p per share, with strengthened coverage ratios (1.39x adjusted capital generation, 1.24x net capital generation).

• Total capital coverage improved to 229%, well above the medium-term range.

• Basic EPS at 13.4p, adjusted diluted EPS up 9% to 8.2p.

Outlook and guidance

• Confident in delivering 2026 full-year targets: adjusted operating profit >£300m and net capital generation ~£300m.

• Expect 5%-10% annual growth in net capital generation over the medium term, barring major market disruptions.

• Interactive Investor revenue growth to align with customer growth; cost to AUMA ratio expected below 18bps.

• Adviser profitability to remain broadly flat in H2; Investments to benefit from acquisitions and higher market levels.

• Investments segment anticipates a step up in H2 profitability from acquisitions and higher markets.