Abrdn move to £320m after brutal first half

Abrdn, the FTSE 100-listed asset manager, posted a loss of £320m in the first six months of the year, after a brutal period that saw it bleed almost £36bn of assets .

The Edinburgh-based company posted a 28% fall in adjusted operating profit to £115m in the first six months of the year, down from £160m in the same period in 2021.

Revenue of £696m was down 8% year-on-year.

Profits and revenue were lower than expected, with analysts forecasting £130m and £714m respectively.

TO READ “I’m not a deal junkie,” says Abrdn CEO Stephen Bird

Abrdn said global outflows of £35.9bn were largely the result of the withdrawal of a final £24.4bn tranche of a more than £100bn mandate it previously executed on behalf of Lloyds Banking Group. The bank withdrew the mandate following the merger between Aberdeen Asset Management and Standard Life in 2017.

As a result, assets under management took a hit, to £508bn for the group, compared to £542bn at the end of 2021.

“The group’s half-year results largely reflect the challenging global economic environment and market turbulence,” said Abrdn chief executive Stephen Bird.

Asset managers in general have suffered as a result of the tough economic environment.

BlackRock reported a 30% drop in profits in the first six months of the year, while Jupiter saw year-on-year profits plummet more than 60%.

To contact the author of this story with comments or news, please email David Ricketts


Source link

You May Also Like

About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!