REG - Aberdeen Group PLC - Final Results
Today 07:00
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RNS Number : 0244V Aberdeen Group PLC 03 March 2026
Aberdeen Group plc Full year results 2025
3 March 2026
Delivering against our strategy with a focus on growth
Very strong performance in interactive investor as we build the UK's leading
Wealth & Investments group
Transformation savings target exceeded, delivering a simpler, more efficient
business
Committed to Group FY 2026 targets, with clear opportunities to drive
sustainable, profitable growth
Summary results
Financial performance indicators 2025 2024 Change
Adjusted operating profit £264m £255m 4%
IFRS profit before tax £442m £251m 76%
Adjusted diluted earnings per share 15.7p 15.0p 5%
Diluted earnings per share 21.2p 13.0p 63%
Adjusted capital generation £323m £307m 5%
Net capital generation £239m £238m -
Full year dividend per share 14.6p 14.6p -
Other performance indicators
AUMA £556.0bn £511.4bn 9%
Net flows £(3.9)bn £(1.1)bn
Net flows excluding liquidity(1) £(1.7)bn £(6.1)bn 72%
Investment performance - 3 years(2) 80% 60% 20ppts
1. Excludes Institutional & Retail Wealth liquidity net outflows
of £(2.2)bn (2024: £5.0bn inflow).
2. % of AUM performing. Details about the calculation of investment
performance can be found in the Supplementary information section of the
Annual report and accounts 2025.
Jason Windsor, Chief Executive Officer, said:
"Our efforts over the last twelve months mean Aberdeen is in much better shape
as we pursue our ambition to be the UK's leading Wealth & Investments
group. Our adjusted operating profit is up 4%.
"ii is undoubtedly one of the UK's most exciting Fintechs, with strong growth
in customers and profits testament to its competitiveness. With higher
customer engagement, a pipeline of proposition enhancements and our compelling
price point, we see significant opportunities for future growth.
"As expected, last year's strategic repricing impacted profitability in
Adviser. However, we have made progress, with net outflows almost halving year
on year, and improved client service. We still have more to do, and our focus
remains on returning to growth as quickly as possible.
"In Investments, cost discipline supported a 5% increase in adjusted operating
profit, with revenues impacted by asset mix. In Institutional & Retail
Wealth, gross flows (excluding liquidity) strengthened by over 50%, with
improved investment performance.
"We have entered 2026 with momentum and remain firmly focused on delivering
our 2026 Group targets and sustainable growth beyond this."
Group: Higher profitability and strengthened capital position
- Adjusted operating profit up 4%, with net capital generation slightly
higher at £239m and including benefit from actions to unlock value from our
DB pension scheme surplus.
- IFRS profit before tax up 76%, including investment gains on our Standard
Life(1) stake and higher operating result.
- Transformation has delivered £180m of annualised cost savings, exceeding
our £150m target.
- Capital requirements reduced by c.£0.2bn following approval to use
Group's internal capital assessment. Total capital coverage increased to 218%
(2024: 198%).
- Adjusted diluted earnings per share increased by 5% to 15.7p, with full
year dividend maintained at 14.6p.
interactive investor: Very strong performance and continued momentum
- Adjusted operating profit up 34% reflecting an excellent year of growth.
- Adjusted net operating revenue up 19%, with a 44% increase in trading
revenues, 17% increase in treasury income and 3% increase in subscription
revenue.
- Daily average retail trades up 32%, supported by increased customer
numbers and engagement.
- Treasury income up 17%, driven by higher cash balances; average cash
margin of 221bps (2024: 229bps).
- Expenses 8% higher reflecting investment in ii brand, proposition
improvements and capacity to support future growth. Improved efficiency, with
cost/AUMA ratio of 18bps (2024: 19bps)(2).
- AUMA of £97.5bn (2024: £77.5bn), reflecting positive markets and record
net inflows of £7.3bn (2024: £5.7bn).
- Good momentum in customer acquisition: total customers(2) up 14%, and
those holding a SIPP account(2) up 30%.
- Revenue in FY 2026(2) expected to reflect growth in subscriptions and
treasury income, partly offset by lower FX / trading fees. Cash margin
expected to be 210-220bps.
Adviser: Improved flows, lower profit reflects repricing actions
- Adjusted operating profit 32% lower, with a 14% reduction in adjusted net
operating revenue driven by previously announced strategic repricing.
- Treasury income 9% lower due to a reduction in the average cash margin to
251bps (2024: 263bps).
- Adjusted net operating revenue yield was 26.6bps (2024: 31.2bps),
including the c.3bps impact of the repricing.
- Adjusted operating expenses increased 7% reflecting the end of a temporary
third-party outsourcing discount.
- AUMA up to £80.4bn (2024: £75.2bn), driven by positive markets. 44%
improvement in net outflows to £2.2bn (2024: £3.9bn outflow) reflected the
repricing, continued focus on service and client proposition enhancements.
- Revenue in FY 2026 to reflect strategic repricing, with total revenue
margin forecast to be 25-26bps. Expenses also expected to reflect end of
third-party outsourcing discount.
- While we have made good progress in turning around our flows, we now
expect to return to positive net flows in 2026, with £1bn net inflow target
to be delivered in 2027.
Investments: Improved efficiency and encouraging flow momentum
- Adjusted operating profit up 5% with focus on operational efficiency,
partly offset by lower revenue.
- Adjusted operating revenue 7% lower, impacted by changes in asset mix.
- Revenue yield of 19.2bps (2024: 21.3bps), with Institutional & Retail
Wealth (I&RW) of 28.0bps (2024: 30.8bps) and Insurance Partners of 7.4bps
(2024: 8.7bps).
- Adjusted operating expenses 8% lower principally reflecting transformation
savings.
- I&RW net outflows were £2.1bn (2024: £0.3bn inflows). Excluding
liquidity, net inflows were £0.1bn (2024: £4.7bn outflow), with the
improvement of £4.8bn driven by positive momentum in most asset classes.
- Insurance Partners net outflows increased to £6.8bn (2024: £4.3bn),
reflecting heritage business in run-off.
- Investment performance improved with 3-year performance of 80%.
- FY 2026 revenue margin forecast to be c.19bps, reflecting changes in asset
mix. Expenses to include benefit from transformation savings delivered in
2025, partly offset by investment in the business and inflation.
Outlook
- We are confident in the outlook for the business and in the FY 2026 Group
targets of adjusted operating profit of at least £300m and net capital
generation of c.£300m.
- Once our net capital generation target has been met, we are targeting net
capital generation to grow on average 5-10% per annum over the medium term,
absent any major market irregularities.
- We have established a target operating ratio of 140-180% for total
capital, over the medium-term.
- Net capital generation in FY 2026 is expected to reflect a full year's
benefit of funding DC contribution from DB surplus of c.£35m, with
restructuring and corporate transaction costs materially lower than FY 2025.
1. Phoenix Group Holdings plc has recently been renamed Standard
Life plc.
2. Excludes financial planning business. Fee income to reflect the
sale of the financial planning business which completed on 30 January 2026.
Summary results by business
interactive investor
2025 2024
Subscription/account fees(1) £54m £52m
Trading transactions £101m £70m
Treasury income £161m £138m
Fee income £23m £25m
Less: Cost of sales £(9)m £(7)m
Adjusted net operating revenue £330m £278m
Adjusted operating expenses £(175)m £(162)m
Adjusted operating profit £155m £116m
Cost/AUMA ratio(2) 18bps 19bps
AUMA(3) £97.5bn £77.5bn
Gross inflows £16.2bn £13.7bn
Redemptions £(8.9)bn £(8.0)bn
Net flows £7.3bn £5.7bn
Total customers(2) 500k 439k
Customers holding a SIPP(2) 104.5k 80.6k
Daily average retail trades (DARTs) 26.6k 20.1k
1. Net of £(8)m (2024: £(8)m) of marketing incentives.
2. Excludes financial planning business. 2025 total customers includes
c.21k expected customers following the acquisition of the direct-to-consumer
retail book from Jarvis Investment Management Limited. The c.21k expected
figure is net of c.5k Jarvis customers who are expected to close their
accounts by mid-2026 - based on trends seen from previous M&A activity.
3. Includes financial planning business AUA of £3.6bn (2024:
£3.7bn).
Adviser
2025 2024
Platform charges £144m £169m
Treasury income £30m £33m
Other revenue(1) £31m £37m
Less: Cost of sales - £(2)m
Adjusted net operating revenue £205m £237m
Adjusted operating expenses £(119)m £(111)m
Adjusted operating profit £86m £126m
Adjusted net operating revenue yield(2) 26.6bps 31.2bps
AUMA(3) £80.4bn £75.2bn
Gross inflows £6.9bn £6.5bn
Redemptions £(9.1)bn £(10.4)bn
Net flows £(2.2)bn £(3.9)bn
1. Includes £26m (2024: £27m) from the distribution agreement with
Standard Life plc.
2. Adjusted net operating revenue yield excludes revenue of £nil
(2024: £4m) for which there are no attributable assets.
3. Includes Platform AUA of £77.0bn (2024: £72.4bn) and MPS AUM of
£3.4bn (2024: £2.8bn).
Investments
Total Institutional & Retail Wealth (I&RW) Insurance Partners
2025 2024 2025 2024 2025 2024
Adjusted net operating revenue(1) £739m £797m
Adjusted operating expenses £(675)m £(736)m
Adjusted operating profit £64m £61m
Adjusted net operating revenue yield(2) 19.2bps 21.3bps 28.0bps 30.8bps 7.4bps 8.7bps
AUM £390.4bn £369.7bn £222.7bn £210.5bn £167.7bn £159.2bn
Gross inflows £63.3bn £60.5bn £45.0bn £36.7bn £18.3bn £23.8bn
Redemptions £(72.2)bn £(64.5)bn £(47.1)bn £(36.4)bn £(25.1)bn £(28.1)bn
Net flows £(8.9)bn £(4.0)bn £(2.1)bn £0.3bn £(6.8)bn £(4.3)bn
Net flows excluding liquidity(3) £(6.7)bn £(9.0)bn £0.1bn £(4.7)bn £(6.8)bn £(4.3)bn
1. Includes performance fees of £15m (2024: £12m).
2. Adjusted net operating yield excludes revenue of £6m (2024: £nil)
for which there are no attributable assets.
3. I&RW liquidity net flows excluded.
Chief Executive Officer's review
Growing in Wealth, repositioning Investments
We established good momentum in 2025, creating a simpler, more efficient
business. We are now looking ahead with clear opportunities to drive
sustainable, profitable growth.
Looking back, I am encouraged by the progress we are making against our
strategy. Our efforts over the last 12 months mean that the business is now in
much better shape as we pursue our ambition to be the UK's leading Wealth
& Investments group.
In 2025, we delivered increased adjusted operating profit of £264m (2024:
£255m) supported by a very strong performance by interactive investor (ii).
We surpassed our transformation target, delivering £180m of annualised cost
savings since the programme was launched in early 2024, and we continue to
embed a culture of efficiency across the business.
We have two leading businesses in the fast-growing UK wealth sector, and a
more efficient Investments business that is focused on areas of real strength.
Through a year of transition, we have taken critical steps toward improved
profitability and growth.
Aberdeen has the privilege of working every day to help millions of people
turn their financial goals into reality. I would like to thank my colleagues
for their commitment, and our customers, clients and wider stakeholders for
their ongoing support and partnership.
Progress on our strategy
As part of our strategy update last March, I highlighted transforming
performance, improving client experience, and strengthening talent and culture
as our Group priorities. I also laid out strategic objectives for each of our
businesses. We have seen progress since then, although we still have more to
do.
In interactive investor we have delivered strong customer and profit growth
while expanding our differentiated proposition and investing in the ii brand.
Adviser has made progress towards a return to net inflows. We are not yet
where we want to be, but we have seen an improvement in client service and
launched the Aberdeen SIPP. In Investments, we have delivered greater
efficiency and focus, and better investment performance in most asset classes,
which is laying the pathway to growth.
We have taken steps to simplify the business and reduce drags on
profitability, with the sales of Aberdeen Financial Planning and Finimize. We
also announced a further acquisition for our US closed end fund (CEF)
business, acquired the retail investor book from Jarvis, announced the pathway
to full ownership of Tritax and, in a first-of-its-kind transaction, we became
the sponsoring employer of the Stagecoach Group Pension Scheme.
In 2025, we took key steps in our transition to growth. We enter 2026 with
gathering momentum in some areas, whilst recognising we still have more work
to do in others. Aberdeen is now a simpler, more efficient group with three
businesses that all have clear headroom for growth. Combined with the
sustained strength of our capital position, which has been further improved
from the end of 2025 with our capital requirement now based on the Group's
internal assessment, we see exciting opportunities to build on the growing
value of the Group over the long term.
People and Culture
A strong culture is an essential ingredient for success. I am proud of the way
colleagues across the Group have united behind our plan, helping to drive a
10ppt uplift in employee engagement.
With the arrival of Siobhan Boylan as Group CFO in the summer, I am confident
that we have a strong team in place to accelerate progress against our
strategic priorities. The streamlined Group Operating Committee has improved
the pace of decision making. Our Executive Leadership Team is ensuring we
bring more commercial and client focus, embracing the opportunity from AI and
deepening our leadership capability.
In January 2026 it was announced that Aberdeen Group plc Chairman, Sir Douglas
Flint, will be stepping down in April. On behalf of the Board and the whole
company, I would like to thank Douglas for his leadership and commitment to
Aberdeen over the last seven years. He has overseen a significant turnaround
during a time of substantial change across the industry, and leaves with our
best wishes.
Update on 2026 Group targets
Last March we announced new Group targets for FY 2026: to increase adjusted
operating profit to at least £300m; and to increase net capital generation to
c.£300m. We are committed to delivering our Group targets: interactive
investor's performance in 2025 affirming that it will play a more substantial
role this year, and the Stagecoach and US CEF transactions are also set to
deliver a positive impact in 2026.
Looking beyond 2026
We are focused on growth and delivering sustainable returns beyond 2026. We
are targeting net capital generation to grow on average 5-10% per annum over
the medium term, absent any major market irregularities, once we have met our
2026 target of c.£300m.
Overview of 2025 performance
A very strong performance from interactive investor and a continued focus on
efficiency helped to deliver a 4% increase in adjusted operating profit to
£264m. Adviser had lower profits, as we had expected, as it implemented its
strategic repricing. Adjusted operating profit in Investments increased 5%, as
a reduction in revenue was offset by lower expenses.
IFRS profit before tax of £442m (2024: £251m) represents a substantial
increase. This includes a gain of £236m from favourable market movements in
our stake in Standard Life plc (formerly Phoenix).
AUMA is up 9% on last year to £556.0bn (2024: £511.4bn), with growth largely
driven by positive markets.
In January 2024, we launched our transformation programme to deliver
annualised savings of at least £150m. Strong execution means we have
surpassed the target, with £84m of cost savings in 2025 and £180m of
annualised savings. I want to underline that this programme has been about
more than cost savings - we have taken the opportunity to reinvest in the
business, particularly in technology, and embed a culture of efficiency for
the long term.
interactive investor
Another very strong performance as impressive growth trajectory continues.
interactive investor delivered another year of impressive growth with customer
numbers, AUMA and profits all rising strongly. In a highly competitive market,
further organic growth, supplemented by the Jarvis acquisition, saw customer
numbers reach 500k (2024: 439k). SIPP customers rose 30% to 105k and ii became
a Which? recommended SIPP provider for the fourth year in a row. Trading
activity was strong throughout the year, with a number of records broken, and
overall trading revenue was up 44%.
This activity helped drive adjusted operating profit in interactive investor
to £155m (2024: £116m), a 34% increase on last year. Profitability benefited
from the scalability and efficiency of the ii operating model and platform
with the cost/AUMA ratio improving by 1bp to 18bps.
interactive investor's very strong growth was supported by our ongoing focus
on building the ii brand, with our new 'Penny drop' brand campaign launched in
Q4, and the further strengthening of our proposition. In November, we launched
a new Managed SIPP, manufactured by Aberdeen Investments, which will help us
to continue growing the number of SIPP customers we now have on the platform.
ii Advice, our digital advice service, was soft launched in Q4, and ii
Community - which offers a social platform for users to connect with and learn
from other investors - reached 34,000 members. The new, simpler pricing went
live in February 2026, and is aimed at further improving our competitiveness
and driving growth by encouraging customers to use the platform for more of
their wealth management needs. As we embed and promote ii Advice and ii 360
(our advanced trading platform) in 2026, we expect our customer appeal to
broaden further.
With a broader proposition, enhanced, simple price plans, growing brand
recognition, and excellent customer service, ii is well positioned for future
growth.
Adviser
Progress on proposition and price competitiveness, with more to do.
In 2025, Adviser took significant and necessary steps that provide the
foundations for future growth. The implementation of our strategic repricing,
alongside further improvements to service, helped to turn around outflows,
which almost halved to £2.2bn (2024: £3.9bn).
The strategic repricing, which took effect for new customers in 2024 and was
applied to Adviser's back book in February 2025, had the expected impact on
profitability. Alongside the reduced benefit from a temporary third party
outsourcing discount, this resulted in adjusted operating profit reducing to
£86m (2024: £126m). This was a necessary step to ensure our competitiveness.
A focus on service improvement has seen service levels increase. With an
average NPS score of +34 in 2024, rising to +45 in 2025, we have already
achieved the target set for 2026. This is a welcome improvement but we know we
have further to go to consistently deliver excellent service. We have also
continued to enhance our proposition, launching the Aberdeen SIPP in Q4, which
gives us a market-leading offer in this important category. We have already
seen over 1,800 new SIPPs taken out on the platform since its launch in
December.
We were pleased to see our focus on service quality recognised, with Defaqto
awarding both Wrap and Elevate a Gold Platform Service rating. We are now
taking further actions to improve service and enhance the proposition. We are
continuing to invest in improving our Adviser platform as we seek to deliver a
market-leading experience for advisers.
The work to return to net growth has not delivered as quickly as we want with
the uncertainty around the UK Budget in November 2025 unsettling customer
confidence. However, with service improving, keener pricing, and a
strengthening proposition, our high level of market penetration offers real
growth opportunities ahead. While we have made good progress in turning around
our flows, we now expect to return to positive net flows in 2026, with £1bn
net inflow target to be delivered in 2027.
Investments
Improving business performance, repositioning for profitable long-term growth.
Favourable markets helped to drive an uplift in Investments AUM in 2025, which
rose 6% to £390.4bn (2024:£369.7bn). Excluding liquidity flows, there was a
significant improvement in net flows within our Institutional & Retail
Wealth (I&RW) channel. This was underpinned by an increase in gross flows,
which rose by 55%, although we also saw an increase in redemptions. Outflows
persisted in the Insurance Partners segment due to heritage business in
run-off.
A key indicator of future flows is investment performance and, building on the
progress made in 2024, 1-year, 3-year and 5-year investment performance are
all now above 70%. This has been a particular area of focus for us, and while
equities investment performance remains challenged, it is now on a positive
trajectory. We are also delivering performance above benchmark in fixed
income, multi-asset and quantitative strategies.
Strong delivery on our transformation programme has been of particular benefit
to Investments, with adjusted operating expenses down by £61m in 2025 to
£675m (2024: £736m). This disciplined approach offset a reduction in revenue
impacted by ongoing pressures on margin being experienced across the active
asset management sector from asset mix, and meant adjusted operating profit
increased marginally to £64m (2024: £61m).
We are continuing to see a momentum shift in Investments, and can point to a
range of innovative activity, both organic and inorganic, that will support
the growth of the business in 2026. Our private markets expertise led to our
partnership with Scottish Widows on its LTAF launch. In infrastructure, we
agreed to extend our ownership of Tritax and we were the lead investor in
London's new Silvertown tunnel. Our recently announced closed end fund
acquisition from MFS in the US is expected to be revenue and adjusted
operating profit accretive in year one. Our landmark deal to become the
sponsor of the Stagecoach Group Pension Scheme brought £1.2bn of AUM and a
share of surplus. Emerging markets moving back into favour also presents a
welcome tailwind for the business.
Overall, Investments has become a leaner business that is increasingly focused
on our areas of strength: specialist equities, credit and real assets - all
asset classes where we foresee market sentiment evolving in a supportive
direction.
Capital allocation and dividend
Our commitment to disciplined capital management is paramount, and we have
outlined clear principles that underpin our approach. Central to that is
maintaining a strong balance sheet, while offering shareholders strong cash
returns.
We finished the year with CET1 of £1.4bn (2024: £1.5bn), and coverage of
163% (2024: 139%). This increase was primarily due to our capital requirement
going forward reflecting the Group's internal capital assessment, which has
reduced our capital requirement by c.£0.2bn.
Total capital coverage, including the benefit of Additional Tier 1 and Tier 2
own funds, increased to 218% (2024: 198%). Over the medium term we plan to
operate with total capital coverage within a range of 140-180% as we reduce
debt and continue to invest in the business.
Future inorganic investment will continue to be disciplined, with sustainable
earnings growth a cornerstone of our approach. 2025 transactions, including
MFS's US CEFs, extending our ownership of Tritax and the Jarvis acquisition in
ii, are good examples of this.
We understand the importance of the dividend to our shareholders and our
dividend policy is unchanged. The Board's intention is to pay a total annual
dividend of 14.6p per share until it is covered at least 1.5x by adjusted
capital generation.
Sustainability
2025 saw meaningful progress on our sustainability agenda, which is focused on
contributing to a credible environmental transition and enabling inclusive
growth.
While the public debate on sustainability and ESG is evolving, client demand
in this area remains strong, with £2.8bn net inflows across our Sustainable
Investing products and mandates in 2025. We remain ahead of schedule with our
public markets decarbonisation pathway, which is to reduce the carbon
intensity of in-scope assets by 50% by 2030, versus a 2019 baseline. We have
also reported a near 80% reduction in operational emissions since 2018, ahead
of our original target of achieving a 50% absolute emissions reduction by
2025.
This year also marks an important milestone with the publication of our first
Climate Transition Plan, setting out new interim operational emissions
targets, and a strengthened approach to climate governance, data, stewardship
and client support.
We are also focused on growing our impact around financial capability and fair
work. It is a source of great pride for our organisation that we are
supporting tens of thousands of people across the UK and globally on these
issues through the charities funded by the Aberdeen Group Foundation, which
was recently merged into the Aberdeen Group Charitable Trust.
Looking ahead
Across our markets there are compelling long-term growth drivers which we are
well placed to benefit from including consumers taking increasing
responsibility for their own savings and investments, greater demand for
personalised solutions, and a growing demand for private markets access. These
trends are likely to continue for many years to come.
Setting out our ambition to become the UK's leading Wealth & Investments
group has created a clear direction, which the business has built upon
throughout 2025.
Although global markets can be turbulent due to current conflicts and ongoing
geopolitical concerns, the fundamental dynamics continue to offer long-term
attractive growth opportunities for our Wealth businesses. interactive
investor is positioned for exceptional growth. The structural opportunities
for growth in Adviser are expected to continue, and we are laser focused on
getting our business into positive flows as soon as possible. In Investments,
we have undertaken crucial repositioning work that will support future
success. Lower costs, better investment performance and focus on specialist
areas of strength are essential to achieving our ambition.
A year into the delivery of our strategy, the business is now leaner and
stronger but my team and I are impatient to go further in achieving our true
potential.
Financial review
Focused on efficiency and investing for growth
During 2025 we made good progress across the Group as we implemented the plan
set out last March. In interactive investor we have continued the very strong
performance reported in recent periods, while Adviser has delivered a
significant improvement in flows, following the repricing implemented in
February 2025 and ongoing improvements to service. Investments has also made
encouraging progress in our priority growth areas.
We have exceeded our targeted transformation savings, creating capacity for
investment and supporting long-term profitable growth and capital generation.
The programme has delivered £180m of annualised savings since its launch in
early 2024, with £154m benefit reflected in our cost base in 2025. The cost
savings have driven a 5% or £54m reduction in our adjusted operating expenses
in 2025. With the programme nearing completion, our focus shifts to cost
discipline through efficiency and automation.
IFRS profit before tax was £442m, a significant improvement on prior year
(2024: £251m). This comprised adjusted operating profit of £264m (2024:
£255m), adjusted net financing costs and investment return of £119m (2024:
£99m), and an overall gain from adjusting items of £59m (2024: loss of
£103m).
Adjusted operating profit improved 4% to £264m (2024: £255m). ii adjusted
operating profit increased 34% to £155m driven by continued strong customer
growth, increased customer engagement and improved operational efficiency.
In Adviser, we undertook a strategic repricing to be more competitive and
drive flows. This, coupled with the end of a third party expense discount, has
resulted in lower adjusted operating profit of £86m (2024: £126m).
Investments adjusted operating profit increased by 5% to £64m with cost
savings delivered through the transformation programme partly offset by lower
revenue arising from changes in asset mix. Improving profitability in this
segment remains a key focus.
The Other segment adjusted operating loss of £41m (2024: £48m) improved,
mainly reflecting lower costs helped by rationalisation of non-core
activities.
Our balance sheet remains strong. This has been crucial in enabling us to fund
our transformation programme and invest in the business while continuing to
support our dividend.
Financial performance
AUMA increase driven by market movements and ii net inflows
Against a backdrop of ongoing elevated macroeconomic and geopolitical
uncertainty in 2025, Group AUMA rose 9% to £556.0bn (2024: £511.4bn). Growth
was mainly driven by £47.6bn of positive market movements, especially in the
second half of the year.
Net outflows (excluding liquidity) improved significantly to £1.7bn (2024:
£6.1bn).
In ii, record inflows were supported by continued strong customer growth,
especially in SIPP with its larger average balances.
Adviser net outflows improved by 44%, with the strategic repricing and
improved service creating a strong foundation to return to positive net
inflows.
Investments net outflows (excluding liquidity) of £6.7bn (2024: £9.0bn)
mainly related to Insurance partners of £6.8bn (2024: £4.3bn), reflecting
Standard Life's heritage business in run-off.
Institutional and Retail Wealth net flows (excluding liquidity) improved
significantly to £0.1bn net inflow (2024: £4.7bn outflow). This benefited
from strong net flow momentum in alternatives and fixed income as well as
improved outflows in equities. Multi-asset flows benefited from the £1.2bn
Stagecoach Group Pension Scheme transaction which leverages Aberdeen's pension
investment solutions and private markets expertise. Liquidity net outflows
were £2.2bn (2024: £5.0bn inflow).
Lower revenue reflects equities net outflows and repricing in Adviser
While average AUMA was higher than 2024, adjusted net operating revenue was 3%
lower at £1,276m (2024: £1,321m) across the Group.
ii revenue was up 19%, with sustained customer growth and increased activity
on the platform reflected in higher trading volumes and FX revenue.
Treasury income across the Group also increased, with the positive impact of
higher average cash balances marginally offset by lower average cash margins.
However, revenue was impacted by the strategic repricing in Adviser and
changes in the asset mix driven by outflows from equities resulting in lower
revenue margins in Investments.
Corporate actions, including the sale of non-core businesses in 2024, resulted
in a net reduction in revenue of £12m.
Expense reductions driven by transformation
Adjusted operating expenses decreased by 5% to £1,012m (2024: £1,066m). This
principally reflects the benefit of £84m of cost savings in 2025 from the
transformation programme.
Staff costs were 2% lower at £451m (excluding variable compensation), with
the benefit of a 3% reduction in average FTEs, including the net result of
corporate transactions. This was partly offset by salary increases and
increased investment to drive growth in ii.
Actions taken delivered an 8% reduction in non-staff costs to £476m, driven
by lower outsourcing, project and change spend, and market data costs as a
result of the transformation programme.
The overall reduction in adjusted operating expenses more than offset the
lower revenue, resulting in 4% growth in adjusted operating profit to £264m
(2024: £255m).
Adjusted net financing costs and investment return
Adjusted net financing costs and investment return increased by 20% to £119m
(2024: £99m). Higher investment gains on our seed and co-investments
benefited from positive markets partly offset by lower interest income on cash
balances.
Adjusting items benefiting from gains in our stake in Standard Life plc
Adjusting items were £59m in 2025, including restructuring and corporate
transaction expenses of £106m (2024: £100m), primarily relating to
implementation of our transformation programme, and gains of £236m as a
result of a c.45% increase in the value of our strategic investment in
Standard Life plc.
Capital
We remained disciplined in our capital allocation, delivering continued
returns to our shareholders via dividends while strategically investing in our
businesses to support sustainable profitable growth.
Adjusted capital generation increased by 5% to £323m (2024: £307m). The
increase includes higher adjusted profit after tax as well as the benefit from
actions taken to unlock value from the DB pension scheme surplus, which
contributed £16m in the second half of the year. Going forward, we expect
this to annualise and benefit capital generation by c.£35m per annum while
retaining future optionality. Net capital generation was broadly flat at
£239m (2024: £238m) as we continued to transform and simplify the business.
We maintain a highly selective approach to inorganic opportunities. In line
with this approach, we announced the following in 2025:
• We are adding further scale to our CEF platform via the proposed
acquisition of £1.5bn of assets from MFS. Subject to approval, this
synergistic acquisition will be profit accretive from year one and is expected
to complete mid-2026.
• We will increase our stake in Tritax from our initial 60% stake to c.80%
in April 2026 and to 100% ownership in 2029, reinforcing our commitment to
long-term growth and leadership in the UK logistics real estate sector.
• In line with our focus on simplifying the Group, we completed the sales
of Finimize (via management buyout) in December 2025 and the financial
planning business in January 2026.
The combination of our balance sheet strength and the scheme's strong funding
position enabled us to become the sponsoring employer of the Stagecoach Group
Pension Scheme. Through this arrangement, Aberdeen has taken on responsibility
for the scheme's funding as well as the management of the scheme's £1.2bn of
assets and will receive a minority share of any future distributed surplus.
We maintain a strong balance sheet and capital position with CET1 own funds at
31 December 2025 of £1,433m. This was slightly lower than 2024 (£1,465m)
primarily reflecting costs to implement our transformation programme. Our
capital requirement is now based on our internal capital assessment with our
Own Funds Threshold Requirement lower at £879m (2024: £1,054m). As a result,
our CET1 capital coverage ratio has increased significantly to 163% (2024:
139%) while total capital coverage stands at 218% (2024: 198%).
We have clear principles by which we allocate capital across the Group, with
the overarching objective to direct resources to where they can generate
returns for shareholders:
• First, we will sustainably grow earnings across our businesses, which is
the source of capital for future investment and for dividends.
• We will preserve our strong balance sheet with a high bar used to assess
organic growth investments and a highly selective approach to inorganic
opportunities. In 2026, we expect restructuring expenses to be materially
lower and include costs of c.£25m relating to the final stages of the
transformation programme.
• Our strong capital position gives us the flexibility to re-invest in the
business to deliver sustainable returns and optionality to lower our gross
debt. Over the medium term we plan to operate with total capital coverage
within a range of 140-180% as we reduce debt and continue to invest in the
business.
• It remains the Board's intention to pay a total annual dividend of 14.6p
per share, until it is covered at least 1.5 times by adjusted capital
generation. Total dividend payments relating to 2025 of £261m are covered
1.24 times on an adjusted capital generation basis (2024: 1.18 times). Going
forward, our dividend will be supported by the strength of our capital
generation, with improving levels of cover over time.
Annual report and accounts 2025
Aberdeen Group plc confirms that in accordance with UK listing Rule 6.4.1R a
copy of the Aberdeen Group plc Annual report and accounts has been submitted
to the National Storage Mechanism and will be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
A copy of this document is also available at:
https://www.aberdeenplc.com/en-gb/investors/financial-library-and-
(https://www.aberdeenplc.com/en-gb/investors/financial-library-and-results)
results
(https://www.aberdeenplc.com/en-gb/investors/financial-library-and-results)
In compliance with Disclosure Guidance and Transparency Rule 6.3.5(1A), the
regulated information required under Rule 6.3.5 is available in unedited full
text form within the Annual report and accounts as available on the National
Storage Mechanism and on the Company's website as noted above.
Media and analyst calls
A conference call for media will take place today at 07:30am (GMT). To access
the conference call, you will need to pre-register at:
https://brrmedia.news/ABDN_FY25_Media (https://brrmedia.news/ABDN_FY25_Media)
A presentation for analysts and investors will follow at 08:30am (GMT). To
view the webcast of the presentation please register at:
https://brrmedia.news/ABDN_FY25 (https://brrmedia.news/ABDN_FY25)
Enquiries:
Institutional equity investors and analysts Retail equity investors
Duncan Heath 0207 1562 495 Equiniti *0371 384 2464
0788 4109 285
Corbin Chaplin 0131 3729 133
0777 4332 428
Media Debt investors and analysts
Duncan Young 0792 0868 865 Graeme McBirnie 0131 372 7760
Iain Dey (Teneo) 0797 6295 906
*Calls may be monitored and/or recorded. Call charges will vary.
LEI: 0TMBS544NMO7GLCE7H90
Forward-looking statements
This document may contain certain 'forward-looking statements' with respect to
the financial condition, performance, results, strategies, targets (including
sustainability targets), objectives, plans, goals and expectations of the
Company and its affiliates. These forward-looking statements can be identified
by the fact that they do not relate only to historical or current facts.
Forward-looking statements are prospective in nature and are not based on
historical or current facts, but rather on current expectations, assumptions
and projections of management of the Aberdeen Group about future events, and
are therefore subject to known and unknown risks and uncertainties which could
cause actual results to differ materially from the future results expressed or
implied by the forward-looking statements.
For example but without limitation, statements containing words such as 'may',
'will', 'should', 'could', 'continues', 'aims', 'estimates', 'forecasts',
'projects', 'believes', 'intends', 'expects', 'hopes', 'plans', 'pursues',
'ensure', 'seeks', 'targets' and 'anticipates', and words of similar meaning
(including the negative of these terms), may be forward-looking. These
statements are based on assumptions and assessments made by the Company in
light of its experience and its perception of historical trends, current
conditions, future developments and other factors it believes appropriate. By
their nature, all forward-looking statements involve risk and uncertainty
because they are based on information available at the time they are made,
including current expectations and assumptions, and relate to future events
and/or depend on circumstances which may be or are beyond the Group's control,
including, among other things: UK domestic and global political, economic and
business conditions; the impact of conflicts and geopolitical tensions
(including the Russia-Ukraine conflict, and conflict involving Iran and in the
Middle East) on global macroeconomic conditions, political stability and
financial markets; market related risks such as fluctuations in interest
rates, exchange rates and commodity prices, and the performance of financial
markets generally; the impact of inflation and deflation; the impact of
competition; the impact of tariffs, both imposed and threatened, and changes
to underlying policies governing global trade; the timing, impact and other
uncertainties associated with future acquisitions, disposals or combinations
undertaken by the Company or its affiliates and/or within relevant industries;
risks affecting defined benefit pension schemes; experience in particular with
regard to mortality and morbidity trends, lapse rates and policy renewal
rates; the value of and earnings from the Group's strategic investments and
ongoing commercial relationships; default by counterparties; information
technology or data security breaches (including the Group being subject to
cyberattacks); operational information technology risks, including the Group's
operations being highly dependent on its information technology systems (both
internal and outsourced) and the continued development and enhancement of said
technology systems (including the utilisation of artificial intelligence
(AI)); natural or man-made catastrophic events; the impact of pandemics;
exposure to third-party risks including as a result of outsourcing; the
failure to attract or retain necessary key personnel; the policies and actions
of regulatory authorities and the impact of changes in capital, solvency or
accounting standards, sustainability disclosure and reporting requirements,
and tax and other legislation and regulations (including changes to the
regulatory capital requirements) that the Group is subject to in the
jurisdictions in which the Company and its affiliates operate.
Metrics, projections, forecasts and other forward-looking statements relating
to sustainability should be treated with particular caution given their
complex nature, their dependence on models and methodologies which are
nascent, and challenges with data quality, consistency and comparability.
Risks and potential impacts arising due to climate change cannot be evaluated
in the same way as more conventional financial risk due to their long-term
nature and the way in which they interact with non-climate-related risks.
As a result, the Group's actual future financial condition, performance and
results may differ materially from the plans, goals, objectives and
expectations set forth in the forward-looking statements.
Neither the Company, nor any of its associates, directors, officers or
advisers, provides any representation, assurance or guarantee that the
occurrence of the events expressed or implied in any forward-looking
statements in this document will actually occur. Persons receiving this
document should not place reliance on forward-looking statements. All
forward-looking statements contained in this document are expressly qualified
in their entirety by the cautionary statements contained or referred to in
this section. Each forward-looking statement speaks only as at the date of the
particular statement. Neither the Company nor its affiliates assume any
obligation to update or correct any of the forward-looking statements
contained in this document or any other forward-looking statements it or they
may make (whether as a result of new information, future events or otherwise),
except as required by law. Past performance is not an indicator of future
results and the results of the Company and its affiliates in this document may
not be indicative of, and are not an estimate, forecast or projection of, the
Company's or its affiliates' future results.
Please see Aberdeen Group plc's most recent Annual Report and Accounts for
further detail of the risks, uncertainties and other factors relevant to its
business and securities.
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