Abrdn profit rises as outflows ease

Abrdn posted a strong rise in first-half profit as revenue rose and outflows of funds eased at the rebranded investment manager.

Adjusted operating profit increased 52% to £160m in the six months to the end of June from a year earlier as fee-based revenue rose 7% to £755m.

The FTSE 100 group swung to a pretax profit of £113m from a loss of £498m and kept its interim dividend at 7.3p a share.

Profit was supported by flat costs as revenue rose. As a result the cost-income ratio improved to 79% from 85%.

Net outflows of funds reduced to £5.6bn. Excluding volatile liquidity flows, net outflows were £1.9bn - less than 10% of the low point in the second half of 2018. Assets under management were broadly flat at £532bn as reductions were partly offset by market gains.

The results were the former Standard Life Aberdeen's first under its new name of Abrdn following a rebrand in July that replaced five logos. Chief Executive Stephen Bird, who took over in September, has pledged to return the group to growth after a lacklustre period following the merger of Aberdeen and Standard Life in 2017.

Bird said: "We have made a strong start to the year and our three-year growth plan. Low interest rates and central bank interventions have created supportive market conditions from which we have benefited. Market volatility is expected to continue due to Covid-19 and its unequal effects in different parts of the world. We have made good progress in simplifying and focusing our business."

Abrdn shares rose 0.3% to 298.7p at 08:10 BST.