By Muvija M
-British asset manager abrdn beat expectations with a 77% jump in first-half profits on Tuesday as a rise in fees helped offset the impact of clients pulling out billions of pounds from the recently rebranded company.
The blue-chip company, formerly Standard Life Aberdeen, reported adjusted pretax profit of 163 million pounds ($225.66 million) for the six months to June, above the company-supplied market consensus of 154 million pounds.
The results, which KBW analysts described as a "mixed bag", are still a boost for chief executive Stephen Bird, who took over last year and has since set out a strategy that focuses on Asia along with responsible investing and the British advisory and consumer business of the company formed in 2017 in a merger of Standard Life and Aberdeen Asset Management.
"Each of our three growth vectors have delivered higher revenue and profits, contributing to the highest overall rates of growth since the merger," Bird said.
FLOOD TO A TRICKLE
Assets under management fell to 532 billion pounds from 535 billion pounds at the end of 2020, with 5.6 billion pounds in net outflows. Rival Schroders last month reported 17.9 billion pounds in inflows.
"Assets continue to leak out the door, but the flood has become a trickle," Hargreaves analyst Nicholas Hyett said.
Bird said abrdn was "very close" to growing its assets but wanted to grow in the right areas.
The group's fee-based revenue climbed 7% to 755 million pounds during the first half, while its cost-to-income ratio improved to 79% from 85% a year earlier, nudging closer to 70% Bird targets by the end of 2023.
Shares in abrdn were little changed in early trade. They have gained 5% so far this year, lagging the FTSE 100 index's 10% rise.
The company also reiterated its outlook and kept its interim dividend unchanged at 7.3 pence.
($1 = 0.7223 pounds)