Aberdeen Group (LSE:ABDN) reported a 21% increase in adjusted operating profit to £151 million for the first half of 2026, supported by modest revenue growth and continued cost discipline. Net capital generation rose 47% to £163 million, while the group’s capital position strengthened, with total capital coverage improving to 229%. Management reaffirmed its full-year guidance, targeting at least £300 million in adjusted operating profit and approximately £300 million in net capital generation for 2026.
Interactive investor was the strongest-performing division during the period, with adjusted operating profit rising 18% to £84 million and net operating revenue increasing 22%. The platform attracted record net inflows of £6.8 billion, while customer numbers grew 14% to 525,000 and cash balances increased significantly. Although the business continued investing in technology and brand development, it also improved operating efficiency relative to assets under administration, reinforcing Aberdeen’s strategy of expanding its presence in the UK direct-to-consumer investment market.
The Adviser division generated adjusted operating profit of £41 million, broadly unchanged from the previous year, on slightly higher revenue. However, it continued to experience difficult net flow conditions, recording £1.3 billion of net outflows despite stronger gross inflows. To address this, the company appointed a new chief executive for the business, aiming to convert recent improvements in customer service and product offerings into stronger commercial performance. Client satisfaction also improved during the period, as reflected by higher net promoter scores.
Within the Investments division, adjusted operating profit increased 9% to £38 million as cost savings and transformation initiatives more than offset a modest decline in net operating revenue. Investment performance also improved, with 86% of assets outperforming their benchmarks over three years, comfortably exceeding the company’s 70% target. The business experienced net outflows of £5.6 billion, excluding liquidity products, largely due to withdrawals from lower-margin equity strategies. These were partly offset by inflows into fixed income and real assets, while recent acquisitions are expected to contribute more meaningfully to earnings during the second half of the year.
Looking ahead, Aberdeen expects interactive investor to continue growing in line with customer acquisition while maintaining improving cost efficiency. The Adviser business is forecast to deliver broadly stable profitability in the second half as efforts continue to restore positive net flows, while the Investments division is expected to benefit from acquisitions and improved market conditions. Management continues to target medium-term annual growth in net capital generation of between 5% and 10%, supported by the group’s recent return to the FTSE 100 and strengthening operational momentum.
Aberdeen’s outlook is underpinned by improving profitability, stronger cash generation, low leverage and a healthier balance sheet. Positive technical indicators also support the investment case, while the company’s valuation remains attractive thanks to a modest price-to-earnings ratio and an appealing dividend yield. Continued pressure on adviser flows, potential margin compression and near-term investment outflows remain the principal risks.
About Aberdeen Group
Aberdeen Group PLC is a UK-based asset and wealth management company operating across retail investing, financial advice and institutional investment management. Its core businesses include interactive investor, a digital investment platform serving individual investors, an Adviser division supporting financial advisers, and an Investments business managing multi-asset, fixed income, real assets and specialist investment strategies for clients around the world.
The company focuses on growing assets under management and administration, improving investment performance and increasing capital generation, with particular emphasis on expanding its direct-to-consumer business and specialist investment capabilities. Its recent return to the FTSE 100 reflects its scale within the UK financial services sector.
Aberdeen generates recurring income through platform subscriptions, investment management fees and treasury activities while maintaining a disciplined approach to cost management and capital allocation. The group’s strategy combines operational efficiency, balance sheet strength and targeted investment to support sustainable long-term growth and consistent shareholder returns.
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