Abrdn 2023 Financial Results

By Elena Vardon

Key Highlights

• Abrdn posted better-than-expected results for its main metrics in 2023 despite market conditions leading to outflows.
• The investment company reported a pretax loss of 6 million pounds ($7.6 million), compared to GBP612 million the previous year.
• Adjusted operating profit slipped to GBP249 million while net operating revenue fell to GBP1.40 billion.

Financial Performance

Abrdn revealed a pretax loss of 6 million pounds for the year ended Dec. 31, showing a significant improvement from the GBP612 million loss in the previous year with losses attributed to changes in fair value from listed investments.

Adjusted operating profit, the company's preferred metric, decreased to GBP249 million from GBP263 million due to cost-cutting measures but surpassed consensus estimates of GBP242 million.

The London-listed group experienced a decline in net operating revenue to GBP1.40 billion from GBP1.46 billion the previous year, impacted by outflows and adverse market movements but remaining slightly above estimates of GBP1.39 billion.

Future Outlook

Despite the challenging market conditions for active asset managers, Abrdn stated expectations of ongoing headwinds resulting from changing client preferences and demands. The board decided to maintain the full-year dividend at 14.6 pence per share.

In conclusion, Abrdn's 2023 financial results indicate resilience and adaptability in the face of market uncertainties and evolving client needs.