Aberdeen Group (ABDN) Q4 2023 TU earnings summary

Executive summary

• New transformation programme targets at least £150m annualised cost savings vs 2023 by end-2025, with ~80% benefiting Investments; implementation is expected primarily in 2024.

• Year-end AUMA was £494.9bn; H2 net outflows were £12.4bn, or 3% of opening AUMA, amid challenging market conditions.

Financial highlights

• AUMA was £494.9bn at 31 Dec 2023, vs £495.7bn at 30 Jun 2023; H2 net outflows of £12.4bn included £9.5bn excluding liquidity.

• Higher interest income supported revenue; 2023 adjusted operating profit was expected broadly in line with consensus, while adjusted capital generation was expected above consensus.

Outlook and guidance

• Transformation savings are expected to contribute ~£60m in 2024, with the programme completed by end-2025; management expects a step change in cost-to-income ratio.

• Full-year 2023 results and further programme details were scheduled for 27 Feb 2024.