Aberdeen Group (ABDN) H2 2025 earnings summary

Executive summary

• Achieved strong momentum in 2025, growing group profits and repositioning the investments business, with transformation and simplification projects exceeding targets and delivering a simpler, more efficient business.

• Delivered group adjusted operating profit of £264m, up 4% year-over-year, with Interactive Investor becoming the largest contributor to group profitability.

• Adviser business improved net outflows by 44% year-over-year, though still in outflow, with service and platform enhancements.

• Committed to delivering 2026 Group targets, focusing on sustainable profitability and capital generation.

Financial highlights

• Adjusted operating profit rose 4% to £264m; IFRS profit before tax increased 76% to £442m, driven by a £236m fair value gain on a strategic investment.

• Net capital generation was £239m, with adjusted capital generation up 5% to £323m.

• Dividend maintained at 14.6p per share, covered 1.2x by ACG and 0.9x by NCG.

• Group-adjusted operating expenses reduced by 5% to £1,012m due to transformation savings of £180m.

• Diluted EPS up 63% to 21.2p; adjusted diluted EPS up 5% to 15.7p.

Outlook and guidance

• Committed to 2026 targets: adjusted operating profit and net capital generation of at least £300m each, with sustainable NCG growth of 5-10% per annum beyond 2026.

• 2026 guidance: ii expects lower FX/trading fees offset by higher subscription and treasury income; Adviser revenue margin to be slightly lower; Investments revenue margin to stabilize at ~19bps.

• Restructuring and transaction costs expected to be materially lower in 2026.