Aberdeen Group (ABDN) H2 2024 earnings summary

Executive summary

• Announced rebranding to Aberdeen Group plc, focusing on two principal brands: Aberdeen and Interactive Investor.

• Strategic focus on three core businesses: Interactive Investor, Adviser, and Investments, each showing improved results but not yet at full potential; transformation program on track for £150 million+ cost savings by end of 2025.

• Adjusted operating profit up 2% to £255 million and net capital generation up 34% to £238 million year-over-year; dividend maintained at 14.6p per share.

• New management structure focused on rigorous resource allocation, execution discipline, and performance management.

• Ambition to be the UK's leading Wealth & Investments group, leveraging scale and market opportunities.

Financial highlights

• Adjusted operating profit rose 2% year-over-year to £255 million in 2024.

• Net capital generation increased 34% to £238 million, and adjusted capital generation up 3% to £307 million.

• IFRS profit before tax improved from a £6 million loss in 2023 to a £251 million profit in 2024, driven by lower restructuring costs and improved investment values.

• Adjusted net operating revenues declined 6% to £1,321 million, reflecting outflows from higher margin products and business disposals.

• Adjusted operating expenses fell 7% to £1,066 million, below previous guidance, driven by £70 million in-year transformation savings.

Outlook and guidance

• Group targets for 2026: adjusted operating profit of at least £300 million (18% increase from 2024) and net capital generation of around £300 million (26% increase from 2024).

• At least £150 million of annualized cost savings targeted by end 2025.

• Interactive Investor targets 8% annual customer growth and cost-to-asset ratio below 20 basis points by 2026.

• Adviser aims for net inflows of at least £1 billion and a Net Promoter Score above 40 in 2026.

• Investments targets adjusted operating profit over £100 million and three-year investment performance above 70% by 2026.