British asset manager Abrdn beat expectations with a 77 per cent jump in first-half profits on Tuesday as a rise in fees helped offset the impact of clients pulling out billions of pounds from the recently rebranded company.
The blue-chip company, formerly Standard Life Aberdeen, reported adjusted pretax profit of £163 million (€192.75 million) for the six months to June, above the company-supplied market consensus of £154 million.
The results, which KBW analysts described as a “mixed bag”, are still a boost for chief executive Stephen Bird, who took over last year and has since set out a strategy that focuses on Asia along with responsible investing and the British advisory and consumer business of the company formed in 2017 in a merger of Standard Life and Aberdeen Asset Management.
“Each of our three growth vectors have delivered higher revenue and profits, contributing to the highest overall rates of growth since the merger,” Bird said.
Flood to a trickle
Assets under management fell to £532 billion from £535 billion at the end of 2020, with £5.6 billion in net outflows. Rival Schroders last month reported £17.9 billion in inflows.
“Assets continue to leak out the door, but the flood has become a trickle,” Hargreaves analyst Nicholas Hyett said.
Mr Bird said Abrdn was “very close” to growing its assets but wanted to grow in the right areas.
The group’s fee-based revenue climbed 7per cent to £755 million during the first half, while its cost-to-income ratio improved to 79 per cent from 85 per cent a year earlier, nudging closer to the 70 per cent Mr Bird has targeted by the end of 2023.
Shares in Abrdn were little changed in early trade. They have gained 5 per cent so far this year, lagging the FTSE 100 index’s 10 per cent rise.
The company also reiterated its outlook and kept its interim dividend unchanged at 7.3 pence. – Reuters
