abrdn Reports Mixed Results Amid Transformation Progress
Why we think this is neutral
While abrdn has shown some positive signs with increased profitability and strong growth in its interactive investor business, there are significant challenges to consider. The company faces ongoing outflows in its Adviser and Investments segments, and revenue pressures persist. The transformation programme is yielding cost savings, but the outlook suggests continued headwinds from a competitive landscape and potential interest rate impacts. The improved capital generation and strong position are encouraging, but they're balanced against the need for sustained improvement in key areas. Overall, the mixed performance and future uncertainties warrant a cautious outlook.
Key Points
- Adjusted operating profit increased by 2% to £255m
- IFRS profit before tax significantly improved to £251m from a loss of £6m in 2023
- interactive investor saw 8% growth in total customers to 439k
- Adviser and Investments segments continued to face net outflows
- Transformation programme delivered £70m of in-year cost savings
- Full year dividend maintained at 14.6p per share
- New FY 2026 targets set for adjusted operating profit and net capital generation
- Company to change name to aberdeen group plc
Summary
abrdn plc reported mixed results for 2024, with adjusted operating profit up 2% to £255m and IFRS profit before tax significantly improved to £251m. The interactive investor business showed strong growth with an 8% increase in customers, while the Adviser and Investments segments continued to face challenges with net outflows. The company's transformation programme delivered £70m of in-year cost savings, surpassing targets. However, the outlook remains cautious due to expected interest rate reductions and ongoing competitive pressures in the asset management industry. The company maintained its full year dividend at 14.6p per share and set new targets for FY 2026, including adjusted operating profit of at least £300m and net capital generation of c.£300m.