REG - abrdn PLC - Spotlight on Personal Webcast

AberdeenAnnouncement

06/07/2023 07:00

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RNS Number : 1133F  abrdn PLC  06 July 2023

abrdn plc

Spotlight on Personal

Building a leading position in the UK savings and wealth market

 

abrdn plc is today holding a presentation for analysts and investors on its
Personal vector with a focus on interactive investor (ii).

Stephen Bird, CEO abrdn plc, and Richard Wilson, CEO abrdn Personal, alongside
members of his leadership team, will give the presentation.

Stephen Bird, CEO of abrdn plc, said: "Everyone in the UK is going to have to
take more control of their own financial future. That means engaging more
actively with our pensions and with our investments. The ii team has done a
fantastic job at building a scalable business in a fast-growing market, which
now sits at the heart of abrdn's Personal vector. We are supported by strong
demographic trends, an improving policy landscape around retirement and a
clear need for people to save more."

Richard Wilson, CEO abrdn Personal, said: "We have a clear ambition to build a
leading position in the UK's personal wealth market and a proud record of
delivering a trusted digital-led subscription service to our growing number of
customers. We are excited to be able to set out our plans for the next phase
of our development today and you can expect to see more of interactive
investor in the coming months, as we deliver new products to market and invest
in our brand."

 

Our Personal vector has undergone a significant transformation under Richard
Wilson's leadership. This has seen the coming together of abrdn's existing
Financial Planning business with ii, the sale agreed for our Discretionary
Fund Management business and the transfer of our Managed Portfolio Service
business to the Adviser vector. Reflecting its scale and growth potential, the
key growth drivers for the business are:

 

·    customer growth;

·    increased product penetration, in particular SIPPs;

·    continued launch of new services, and

·    growth opportunities from being part of the wider abrdn group.

 

Today's event will highlight our differentiated offering, pricing approach,
technology and data capabilities, and scalable and efficient financial model,
all of which underpin our confidence in the future competitiveness of the ii
model.

 

Additionally, we will update on key growth dynamics and ambitions, including:

 

·    Customer growth - Subdued outlook in 2023 due to market conditions.
Targeting mid-single digit CAGR in total customer base over the next 5 years,
driven by organic growth and new propositions, supported by investment in
brand and advertising.

·    SIPP accounts - Continued growth in SIPP accounts from a SIPP
penetration of c13% as at 31 December 2022 to market normal penetration levels
of around 25-30%.

·    Trading transactions - Growth in market share of trades driven by
expanded customer numbers and pipeline of new trading services and proposition
enhancements.

·    Treasury income - ii has continued to increase the interest paid on
client cash balances as base rates have risen, with the indicative average
cash margin for 2023 now expected to be 180-200bps. Cash balances are expected
to be 9-10% of AUA going forward.

·    Cost/Income ratio - ii has significant operating leverage with an
efficient cost base. Post the restructure and full integration of the
Financial Planning business, the combined Personal vector is positioned to
deliver growth with a cost/income ratio of <60%.

 

The presentation will be audio webcast starting at 2:00pm (BST) and is
expected to end by 4:00pm (BST). The materials used in the presentation and
the audio webcast will be available here
(https://www.abrdn.com/en-gb/corporate/investors) and a replay will be
available.

6 July 2023

LEI number of abrdn plc: 0TMBS544NMO7GLCE7H90

Classification: 3.1. Additional regulated information required to be disclosed
under the laws of the United Kingdom

Enquiries:

 

 Institutional investors and analysts

 Catherine Nash                        +44 (0)7798 518 657

 Media

 Duncan Young                          +44 (0)7920 868 865

 

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