Abrdn Plc

Aberdeen reported adjusted operating profit of GBP 151 million, up 21% year on year, and IFRS profit before tax of GBP 276 million, reflecting investment gains and interest income. Net capital generation increased 47% to GBP 163 million, while adjusted capital generation rose 26% to GBP 182 million; dividend coverage strengthened to 1.39x on adjusted capital generation and 1.24x on net capital generation. Interactive Investor revenue increased 22% to GBP 173 million and adjusted operating profit rose 18% to GBP 84 million, with net inflows of GBP 6.8 billion and AUMA of GBP 108 billion. Adviser revenue increased modestly to GBP 103 million and adjusted operating profit was broadly stable at GBP 41 million, while net outflows were GBP 1.3 billion. Investments revenue was 2% lower at GBP 363 million, costs fell 3% to GBP 325 million, and adjusted operating profit increased 9% to GBP 38 million. For full-year 2026, management reiterated group targets of adjusted operating profit of more than GBP 300 million and net capital generation of around GBP 300 million; it also expects to redeem GBP 210 million of Tier 1 debt at its first call date in December 2026, subject to regulatory approval.

Jason Windsor struck a positive but still demanding tone, saying the business is on a “positive trajectory” and that he is increasingly confident in the 2026 targets. He highlighted stronger execution, better profitability, and improved momentum in ii and Investments, while saying the group is still “far from where I want Aberdeen to be.” On Adviser, he stressed that the proposition is strong but that the market has changed and the company needs to be more commercial and more targeted in how it serves firms and their shareholders. He also said AI adoption is accelerating internally, but it is still too early to forecast the business impact.

Siobhan Boylan emphasized strong financial performance, with adjusted operating profit of GBP 151 million, IFRS profit before tax of GBP 276 million, and net capital generation of GBP 163 million. She pointed to efficiency gains, lower restructuring expenses, and a GBP 19 million benefit from using the defined benefit pension surplus to fund defined contribution pension costs. Capital remains strong, with total capital coverage at 229% versus 218% at the end of 2025, well above the 140% to 180% medium-term operating range. She also said the interim dividend was maintained at 7.3p per share, and that the company expects to redeem GBP 210 million of Tier 1 debt in December 2026, subject to regulatory approval.

Analysts focused on Adviser turnaround timing, pricing, equity flows, ii cash margin, and capital return. On Adviser, management said Rich Denning’s segmentation work showed the need to re-engage firms more selectively, improve commercial positioning, and pursue back-book migrations, while also acknowledging that a return to net inflows will take longer than previously expected. On pricing, management said the ii repricing has landed well and improved competitiveness, but the business is not trying to compete purely on teaser commissions; it remains a long-term savings and investing platform. On capital, management said the immediate priority is debt paydown and investing in the business, and that no additional capital return beyond the dividend and the planned Tier 1 redemption is being planned at this stage.