abrdn (LON:ABDN) reported higher first-half profit and capital generation, supported by growth at its Interactive Investor platform, cost discipline and improved investment performance, while cautioning that a return to net inflows at its Adviser business will take longer than previously expected.
Adjusted operating profit rose 21% to £151 million in the first half of 2026, while net capital generation increased 47% to £163 million. IFRS profit before tax was £276 million, reflecting investment gains and interest income. The company maintained its interim dividend at 7.3 pence per share.
Interactive Investor Drives Growth
Interactive Investor, the group’s direct-to-consumer investing platform, delivered another strong period. Customer numbers increased 14% year over year to 525,000, including a 35% increase in SIPP customers to 125,000. Net inflows reached a record £6.8 billion, while assets under administration rose 15% to £108 billion, aided by market gains.
Revenue at Interactive Investor increased 22% to £173 million and adjusted operating profit rose 18% to £84 million. Trading activity was elevated, with daily average retail trades increasing 42% to 35,700. Treasury income rose 33% to £100 million, driven by higher average cash balances.
Windsor said the platform’s repricing had “landed well” and that the business was gaining market share in trading, assets and new accounts. Average customer account sizes exceeded £200,000, approximately double the market average, according to the company.
Management expects continued revenue growth in line with customer growth and maintained its expectation for an Interactive Investor cost-to-assets-under-administration ratio below 18 basis points. Windsor said the group would continue investing in the brand and customer proposition, while protecting the platform’s cost efficiency.
Adviser Flows Remain a Challenge
Adviser assets under administration increased 5% to £85 billion, largely due to positive markets, but net outflows widened to £1.3 billion from £900 million a year earlier. Gross inflows increased 9%, though this was outweighed by higher redemptions.
Revenue rose modestly to £103 million, while adjusted operating profit was broadly stable at £41 million. The revenue yield declined to 25.3 basis points, reflecting strategic repricing and tiering effects.
Windsor said the group had improved service levels after strengthening leadership and bringing servicing in-house from FNZ in July. Adviser’s Net Promoter Score was +53 and customer satisfaction reached 97%, while firm onboarding times improved by more than 90%.
However, the company now expects the return to net inflows to take longer than its prior expectation of 2026. Windsor cited consolidation among independent financial advisers, panel rationalization and intensified competition for transfer business. He said the company was sharpening distribution, pursuing strategic partnerships and seeking back-book migration opportunities.
Chief Financial Officer Siobhan Boylan said the group had previously guided to a revenue margin of 25 to 26 basis points in Adviser. Windsor added that competitive pressure could lead to some reduction in revenue margins over a three-year period, although growth in assets from markets and flows would also affect results.
Investments Profit Rises as Performance Improves
The Investments division reported a 9% increase in adjusted operating profit to £38 million, as costs fell 3% to £325 million. Assets under management increased 2% to £398 billion, supported by market performance, while revenue declined 2% to £363 million.
Three-year investment performance improved, with 86% of assets performing against benchmark, above the company’s 70% target. One-year performance reached 88%.
Real assets generated £1.4 billion of net inflows during the half, while the infrastructure business completed a first close of approximately £800 million for its flagship rail fund. The wholesale channel recorded positive flows in 10 of the last 12 months.
Net outflows in Institutional & Retail Wealth, excluding liquidity, reflected approximately £4 billion of previously announced lower-margin equity withdrawals. Insurance partner net outflows improved to £800 million from £4.5 billion in the prior period.
Management expects second-half Investments performance to be materially stronger, helped by recent bolt-on acquisitions, higher market levels and anticipated performance and development fees. Windsor said the business was expected to be broadly in line with its £100 million adjusted operating profit target for 2026 based on annualized second-half profit.
Capital Position and Outlook
Adjusted capital generation rose 26% to £182 million, including a £19 million benefit from using the defined benefit pension surplus to fund defined contribution pension costs. Total capital coverage increased to 229% from 218% at the end of 2025, above the group’s medium-term operating range of 140% to 180%.
Given its capital position, the company expects to redeem £210 million of Tier 1 debt at its first call date in December 2026, subject to regulatory approval. Management said its capital priorities remain debt reduction and investment in organic and inorganic growth opportunities, and said it was not planning additional shareholder returns beyond the dividend at this stage.
Windsor also said the company was expanding the use of artificial intelligence, including the rollout of Copilot Premium, though he said it was too early to forecast AI’s financial effects.
About abrdn (LON:ABDN)
Aberdeen is a Wealth & Investments group that connects investors to the expertise, tools, and solutions they need to grow and manage their wealth with confidence.
We are structured around three businesses – interactive investor, Adviser and Investments. As a diversified group, we have positioned ourselves for growth in a changing investment landscape.
As at 31 December 2025, Aberdeen manages and administers £556bn of client and customer assets.
