Aberdeen Group plc

Half Year Results 2025

Part 1 of 2

30 July 2025

Half year results 2025

Contents

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Aberdeen Group plc's LEI Code is 0TMBS544NMO7GLCE7H90

Delivering against strategic priorities

Group is delivering well against plan, with transformation on track

interactive investor: sustained organic growth and record net inflows driving 25% profit growth

Adviser: improving net flows, with lower profitability reflecting strategic decision to reprice the book

Investments: delivery of greater efficiency mitigated lower revenue, whilst the business pivots to growth areas

Summary results

1. Comparative as at 31 December 2024.

2. Excludes Institutional & Retail Wealth (I&RW) liquidity net outflows of £1.4bn (H1 2024: £2.4bn inflow).

Jason Windsor, Chief Executive Officer, said:

"In the first six months of 2025 we have made good progress against our strategic ambition to become the UK's leading Wealth & Investments group. Our financial performance reflects our transition to achieving our growth and efficiency targets.

"interactive investor continues to go from strength to strength, delivering sustained growth in customers and profit with record net inflows. Our decision to reprice in Adviser had the expected impact on profitability. With Q2 net flows at their best level for over two years and much improved service and sales performance, the foundations are in place to return Adviser to growth.

"In Investments we have made further progress in improving efficiency, which has kept profits stable as we reposition the business towards our strengths in credit, specialist equities and real assets.

"Looking ahead, there is clear growth potential across all three of our businesses and we remain focused on delivering against our 2026 targets."

Chief Executive Officer's statement

Introduction

Aberdeen has made good progress in the first half of 2025 as we implement our strategy to be the UK's leading Wealth & Investments group. Despite significant market volatility during the first half of the year, our overriding objective has remained to support our clients to achieve their investment goals - whether they are novice investors, or some of the world's most sophisticated financial institutions.

As I set out a year ago, my top three priorities for Aberdeen are: to transform performance, improve the client experience, and to strengthen our talent and culture. We have made good progress across all three over the last twelve months. Earlier this year we established our 2026 targets and set sharper priorities for each business, all led by a strengthened executive leadership team. We are delivering through a focus on execution, simplifying the business and strengthening our talent.

In the first half, the Group made significant progress to improve our growth outlook and efficiency, and we continue to see considerable headroom as we drive to improve performance. I would like to take the opportunity to thank our clients, shareholders and colleagues for their continued support.

It was with deep sadness that we announced the unexpected death in May of Michael O'Brien, one of our Non-Executive Directors. Mike was a source of inspiration and advice to all of us who worked with him, and he'll be sorely missed by all of us at Aberdeen.

Our strategic priorities and 2026 targets

In March, we set out our strategic priorities:

- interactive investor - sustain efficient growth by building on our differentiated proposition and investing in the ii brand;

- Adviser - return to net inflows by enhancing our proposition and delivering leading client service; and

- Investments - deliver a step change in profitability by repositioning to areas of strength and opportunity and expanding further in growth areas, whilst driving improved efficiency.

We also announced new Group targets for FY 2026: adjusted operating profit of at least £300m and net capital generation of c.£300m, with the latter demonstrating our commitment to supporting the dividend.

2025 is a year of transition for Aberdeen. During an extraordinary six months from a macro and geopolitical perspective, the business has made good progress on improving our proposition to clients and the long-term value creation for shareholders.

The reasons for my confidence are clear. We are well positioned as a Wealth & Investments group with two leading businesses in the fast-growing UK Wealth sector, alongside an international specialist asset manager repositioning to focus on its strengths and where we see growth opportunities. This is underpinned by a commitment to continuous improvements in efficiency, technology and talent.

Strengthened leadership team

We need our people engaged and motivated, with belief and confidence in Aberdeen, to realise the opportunity in front of us. And that starts with leadership.

Last week, I was pleased to welcome Siobhan Boylan as our new Group CFO. Siobhan's skillset and experience in the wealth and investments industry is highly relevant and I am very much looking forward to working with her.

In Investments, John McCareins joined as Chief Client Officer, with a clear priority to grow our client business and Alain Courbebaisse - previously part of interactive investor's leadership team - was appointed as Investments COO.

By putting the best talent in the right roles, and with a relentless focus on execution, we are well placed to accelerate progress against our strategic priorities.

Update on transformation programme

As at the end of H1 2025, the transformation programme had delivered £137m of run rate cost savings, the majority of which benefit the Investments business. We remain on track to deliver the target of at least £150m of cost savings on an annualised basis by the end of 2025.

Our transformation programme is about more than just cost reduction; it is also designed to deliver improved outcomes for our clients and colleagues, and set up Aberdeen for the future. Under the leadership of Richard Wilson (Group COO and ii CEO), we are starting to deliver improved operational efficiency, simpler processes, better operating models, greater automation and smarter use of technology and AI.

Overview of H1 2025 performance

Strong performance by interactive investor and continued cost discipline enabled us to maintain Group adjusted operating profit in the half broadly in line with last year at £125m (H1 2024: £128m) - notwithstanding the impact of the previously announced Adviser repricing.

IFRS profit before tax increased by 45% to £271m
(H1 2024: £187m) driven by the increase in the value of our 10.4% stake in Phoenix, and lower restructuring spend.

AUMA is broadly flat compared to the end of last year at £517.6bn. Group net inflows excluding liquidity were £0.5bn (H1 2024: £1.6bn outflow), driven by strong inflows in interactive investor, and lower outflows in Adviser, with much improved momentum. Overall, Investments had net outflows; with inflows in Institutional & Retail Wealth more than offset by outflows in Insurance Partners.

interactive investor

Sustained growth in assets, customers and profits - while maintaining efficiency

interactive investor has delivered strongly for its customers and our shareholders. Customer numbers increased year-on-year by 9% to 461k, with SIPP customers growing by 27%, as customer awareness steps up following greater investment in the ii brand. This helped to deliver record net inflows of £4.0bn (H1 2024: £3.1bn), and contributed to a 9% increase in AUMA to £84.7bn. Trading and FX revenues increased with retail trades up 23%. Adjusted operating profit was up 25% year-on-year to £69m (H1 2024: £55m).

We expect continued growth in customers as we broaden engagement in the second half of 2025, with proposition enhancements including the launch of ii's Managed SIPP (designed with Aberdeen Investments), ii Advice (a digital advice service) and ii 360 (an advanced trading platform). We will also see the benefit of acquiring the direct-to-consumer retail book from Jarvis Investment Management Limited. We completed the integration earlier this month and expect this to result in around 20k additional customers by the end of the year.

With our outstanding customer service and exceptional value offering, we are well placed to sustain growth and to enjoy the compound effects of gaining a growing share of a growing market.

Adviser

Laying foundations to return to growth in flows and profits

In the first half, we saw net outflows of £0.9bn, an improved picture compared with net outflows of £2.0bn in H1 2024 and £1.9bn in H2 2024. AUMA was up slightly at £75.7bn (FY 2024: £75.2bn), driven by higher markets. Adviser remains number two in the market by AUMA, serving over 50% of the UK's IFAs.

The strategic reprice we implemented to enhance our market competitiveness had the expected impact on adjusted operating profit, which reset down by 35% to £42m in the half (H1 2024: £65m). This was a necessary step to set the conditions for future growth.

As highlighted at the Q1 results, service levels have been restored and improved further in Q2. Our Net Promoter Score (NPS) reached +43 in the first half (FY 2024: +34), ahead of our 2026 target (>+40). We will now seek to maintain this level of service, day in, day out. We are also partnering with consolidators, which is critical to capturing growth and driving a healthy pipeline. Overall, we remain committed to our target of £1bn of net inflows in FY 2026.

Investments

Resilient performance underpinned by focus on efficiency

Total Investments AUM was down marginally at £367.9bn in the half (FY 2024: £369.7bn) reflecting net outflows of £4.1bn (H1 2024: £1.0bn outflow), including the previously announced redemption of a low margin mandate, offset by positive markets.

Excluding this previously announced redemption, Institutional & Retail Wealth (I&RW) delivered a net inflow of £4.4bn (H1 2024: £0.4bn inflow), reflecting significant mandate wins in quantitative strategies and fixed income partially offset by equities and liquidity outflows.

Excluding liquidity, gross inflows in I&RW were £9.3bn higher at £21.9bn (H1 2024: £12.6bn) - the highest level for over two years. This was offset by Insurance Partners, which saw £4.5bn of net outflows (H1 2024: £1.4bn outflow), largely from outflows from heritage business in run-off.

Investment performance has improved over five years (72% of AUM performing, versus 71% for FY 2024) and over three years (71% versus 60%), albeit it has reduced over one year (70% versus 77%). Further work remains to improve our equities performance, in particular in Asia.

In the half, we launched two more active ETFs, won a Long-Term Asset Fund mandate with Scottish Widows and completed infrastructure deals including London's £1bn Silvertown tunnel project - all helping to demonstrate our capabilities in focus areas.

The ongoing trend towards passive strategies continues to put pressure on margins and hence cost discipline has been critical. Against this backdrop, a 10% reduction in adjusted operating expenses helped to deliver adjusted operating profit of £35m for the half (H1 2024: £34m).

Looking ahead

Our ambition is to be the UK's leading Wealth & Investments group, with fast growing direct and advised wealth platforms, and a specialist asset manager that operates worldwide. Across our markets there are long-term structural growth drivers we are well placed to leverage - the UK population needs great value savings, retirement and investment propositions, and asset management clients globally need high quality and distinctive investment solutions.

As we head into the second half of 2025, we remain focused on realising the significant potential of this Group through disciplined delivery. I am confident we have the right team to meet this challenge. We have clear strategic priorities and 2026 targets which will enable us to provide evidence of our progress, as we build a business capable of long-term, sustainable growth.

Jason Windsor

Chief Executive Officer

Results summary

The IFRS profit before tax was £271m (H1 2024: £187m) including adjusted operating profit of £125m (H1 2024: £128m) and adjusted net financing costs and investment return of £56m (H1 2024: £42m). Adjusting items were £90m (H1 2024: £17m) including:

- Restructuring and corporate transaction expenses of £41m (H1 2024: £51m), including costs relating to our transformation programme.

- Gains of £155m (H1 2024: losses of £15m) from the change in fair value of significant listed investments as a result of the increase in the share price of Phoenix in H1 2025.

- H1 2024 adjusting items also included profit on disposal of subsidiaries of £88m.

Adjusted operating profit was £3m lower than H1 2024. Lower revenue in Investments and Adviser was partly offset by growth in revenue in ii. Lower expenses reflected the benefit of further cost reduction activity particularly in Investments. Our cost transformation programme has helped us to deliver a £36m reduction in adjusted operating expenses in H1 2025, and with an annualised benefit of £137m achieved to date, we remain well on track to deliver at least £150m of annualised cost savings by the end of 2025. The implementation costs, included in restructuring expenses, were £39m in H1 2025, resulting in total cumulative implementation costs of £112m.

Adjusted net operating revenue

Adjusted net operating revenue decreased by 6% reflecting:

- Impact of net outflows primarily in equities and changes to asset mix resulting in lower Investments margin.

- Other margin changes including higher trading and FX activity as well as higher treasury income in ii, partially offset by the impact of the repricing in Adviser.

- £6m benefit of favourable market movements.

- £(10)m net impact from corporate actions mainly reflecting the sales of our European headquartered Private Equity business, threesixty and our digital innovation group, partially offset by the acquisition of First Trust Advisors closed-end funds in H2 2024.

Adjusted operating expenses

Adjusted operating expenses reduced by 7% reflecting:

- 3% reduction in staff costs (excluding variable compensation), with the benefit of 4% fewer FTEs reflecting our cost transformation programme and net result of corporate transactions, partly offset by salary increases and increased investment to drive growth.

- Lower variable compensation reflecting fewer FTEs.

- 10% reduction in non-staff costs, with cost savings partly offset by the impact of inflation.

1.    In 2024 the measure of segmental revenue was renamed from net operating revenue to adjusted net operating revenue. See Note 4.4(c) for a reconciliation of these revenue measures.

2.    See Supplementary information for a reconciliation to IFRS staff and other employee related costs.

Adjusted operating profit

- Profit increased by 25% to £69m, including higher trading and treasury income and the benefit of lower losses in the financial planning business.

Adjusted net operating revenue

- Revenue of £154m, was £17m higher than in H1 2024, reflecting the continued benefit of sustained customer growth and diversified revenue streams.

- Subscription revenue, gross of marketing incentives, of £30m (H1 2024: £29m) reflecting customer growth and customers benefiting from our differentiated pricing plans.

- Trading revenues of £45m reflected higher trading activity, which rose to record levels during the period of heightened market volatility in early Q2 2025. Daily average retail trades were 25.2k in H1 2025, 23% up on H1 2024.

- Treasury income increased to £75m, resulting from higher cash balances partially offset by a reduction in average cash margins.

- The average cash margin in H1 2025 was 221bps (FY 2024: 229bps) and is expected to be in the region of 210-220bps for FY 2025.

1.    See Supplementary information for additional ii metrics.

2.    Comparative as at 31 December 2024.

3.    Includes financial planning business AUA of £3.7bn (31 December 2024: £3.7bn).

4.    Net of £4m (H1 2024: £3m) of marketing incentives.

5.    Excludes our financial planning business.

Adjusted operating expenses

- Expenses increased by £3m or 4%, reflecting investment in brand awareness, technology developments and capacity to support future growth.

AUMA

- AUMA increased to £84.7bn benefiting from strong markets and growth in net flows driven by sustained customer growth.

- Average customer cash balances as a percentage of average AUA were 8.8%⁵ (H1 2024: 8.8%⁵).

- Total customers increased by 9% to 461k⁵ (H1 2024: 422k⁵) due to organic growth. The acquisition of the direct-to-consumer retail book from Jarvis Investment Management Limited completed on 7 July 2025, bringing an expected additional c.20k customers. Our strategy to increase SIPP market penetration continues, with the number of customers holding a SIPP account up by 27% to 92.4k⁵ (H1 2024: 73.0k⁵).

Gross and net flows

- Net inflows increased by 29% to £4.0bn due to growth from new customers and existing customers choosing more of our products, including our SIPP.

- Within this, the ii direct platform generated net inflows of £4.1bn with £0.1bn net outflows in the financial planning business.

Adjusted operating profit

- Profit decreased by 35% to £42m (H1 2024: £65m).

- Expenses impacted by reduced benefit from a temporary third-party outsourcing discount of £4m (H1 2024: £7m), which ended in February 2025.

- Other expenses higher due to further investment to enhance the client proposition.

- Cost/income ratio increased to 59%, due to reduction in revenue and higher expenses.

Adjusted net operating revenue

- Revenue decreased by 14% to £102m mainly due to lower Platform charges.

- Platform charges reduced by 14% to £72m mainly reflecting the previously announced repricing, which was applied to the back book in Q1 2025 and the effect of strategic pricing initiatives.

- Treasury income on client balances reduced to £15m reflecting a reduction in average cash balances and lower cash margins.

- The average margin earned on client cash balances during H1 2025 was 257bps (H1 2024: 263bps). The indicative Adviser average cash margin for FY 2025 is expected to be lower reflecting the impact of expected Bank of England rate cuts.

- Other revenue decreased by £4m to £15m primarily reflecting the sale of threesixty in July 2024.

1.    Adjusted net operating revenue yield excludes revenue of £nil (H1 2024: £4m) for which there are no attributable assets.

2.    Comparative as at 31 December 2024.

3.    Includes Platform AUA of £72.8bn (31 December 2024: £72.4bn) and MPS AUMA of £2.9bn (31 December2024: £2.8bn).

4.    Includes £12m (H1 2024: £13m) from the distribution agreement with Phoenix.

Adjusted net operating revenue yield

- Decreased to 27.4bps due to the lower revenue as outlined under adjusted net operating revenue.

- We expect to see a reduction in revenue yield of 3bps in 2025 reflecting the previously announced repricing which was applied to the back book in Q1 2025.

- In addition to the reprice above, we continue to offer strategic firm level and individual large case pricing as part of our competitive proposition.

- FY 2025 revenue margin is expected to be c.27bps.

AUMA

- AUMA increased slightly to £75.7bn reflecting positive market movements partially offset by net outflows.

- Average AUMA of £75.1bn was 1% higher than H1 2024.

- Average customer cash balances as a percentage of average AUMA (excluding bonds and Wrap SIPP) were 2.7% (FY 2024: 2.4%).

Gross and net flows

- Restored service levels, enhanced platform functionality and repricing led to a significant improvement in net outflows. H1 2025 net outflows were £0.9bn (H1 2024: £2.0bn). The £1.1bn improvement reflects £0.2bn growth in gross inflows combined with £0.9bn reduction in outflows.

- Progress made towards our goal of delivering market-leading service levels as part of our broader priority of returning to net inflows as soon as possible; further supported by an improving new business pipeline.

1.    Includes performance fees of £3m (H1 2024: £3m).

2.    Adjusted net operating revenue yield excludes revenue of £6m (H1 2024: £nil) for which there are no attributable assets.

3.    Comparative as at 31 December 2024.

4.    Institutional & Retail Wealth liquidity net flows excluded.

Adjusted operating profit

- Profit increased by 3% or £1m to £35m reflecting reduced costs largely offset by lower revenues.

Adjusted net operating revenue

- 9% lower than H1 2024 reflecting changes to the asset mix including the impact of net outflows in equities.

- Performance fees of £3m (H1 2024: £3m) were earned mainly from active equities and fixed income.

Adjusted operating expenses

- Adjusted operating expenses reduced by £36m (10%) to £336m (H1 2024: £372m) primarily benefiting from transformation cost reduction activity including lower outsourcing, staff costs, project and change spend and market and data costs.

- Adjusted operating expenses also benefited from reduced central Group costs and lower costs following the disposal of our European-headquartered Private Equity business in April 2024.

Institutional & Retail Wealth

Adjusted net operating revenue

- 7% lower at £310m (H1 2024: £335m) primarily due to net outflows particularly from higher margin asset classes and the net impact of corporate actions.

- 1% reduction in average AUM to £208.9bn (H1 2024: £211.0bn) with equities average AUM down 15% and average quantitatives AUM up 21%.

Adjusted net operating revenue yield

- 2.7bps lower at 29.0bps largely due to changes in asset mix including the impact of net outflows in equities.

Gross inflows

- Excluding liquidity, £9.3bn (74%) higher at £21.9bn (H1 2024: £12.6bn), at the highest level for over two years. Improvements in quantitatives and real assets, reflecting continued demand for these asset classes and the strength of our offering.

Net flows

- Net inflows of £0.4bn (H1 2024: £0.4bn). Excluding liquidity, net flows improved by £3.8bn to £1.8bn despite a £4.0bn outflow relating to the redemption of a low-margin mandate, as previously announced. Redemptions are offset by higher gross inflows including significant mandate wins in quants and fixed income.

- Excluding liquidity, net flows improved to 1% of opening AUM compared with (1)% in H1 2024.

- Redemptions (excluding liquidity) were £5.5bn higher than H1 2024 at £20.1bn (H1 2024: £14.6bn).

Insurance Partners

Adjusted net operating revenue

- 14% lower at £61m (H1 2024: £71m), reflecting the impact of asset mix and lower pricing offset by a 1% increase in average AUM to £157.9bn.

Adjusted net operating revenue yield

- Adjusted net operating revenue yield decreased to 7.8bps (H1 2024: 9.1bps) due to a shift in asset mix from active to passive strategies. This, together with related pricing changes, is expected to result in a further reduction in revenue yields.

Gross inflows

- £4.1bn lower than H1 2024 at £8.7bn (H1 2024: £12.8bn).

Net flows

- Net outflows reflect outflows from heritage business in run-off, partially being offset by inflows from workplace pensions.

- Net outflows of £4.5bn in H1 2025 (H1 2024: £1.4bn outflow), representing (2.8)% of opening AUM compared with (0.9)% in H1 2024.

Investment performance

Investment performance is now at 70% or above across the key one-, three- and five-year periods following an improvement in the three-year measure in 2025. This increase has been largely driven by an improvement in three-year multi-asset and quantitative performance. Despite the volatile geopolitical market backdrop, strong investment returns and outperformance continue to be delivered by our fixed income, liquidity, quantitative and alternatives teams.

Fixed income remains an area of strength with outperformance in Credit, Emerging Market (EM) Debt, US Municipal and Liquidity strategies. Client interest, flows and pipeline remain positive.

In multi-asset, our award winning risk targeted MyFolio range continues to deliver strong returns relative to peers, driven predominantly by strategic asset allocation. Diversified assets funds have also delivered positive returns in H1 and continue to deliver continued strong longer-term performance versus cash and peers over the key one-, three- and five-year periods.

Within real assets, our strategies are showing positive signs of recovery with an improvement in Direct real estate over one-year and continued robust five-year figures reflecting stronger UK and Living performance while three-year performance remains impacted by a weak H2 2022 which saw significant rises in interest rates which had a negative impact on real estate valuations.

For equities, 2025 has been another period of strong outperformance of the value investment style over quality, particularly in Asia and emerging markets. This was a headwind for our equity AUM which is underpinned by a quality approach. However, it has been a better period for our Asia/EM Small Cap, Japanese and our flagship EM Income funds which have benefited from positive stock selection. We continue to focus on evolving and enhancing our equity processes through process improvement initiatives.

Across quantitative, the Enhanced Index range continues to outperform with the multi-factor approach delivering well including top or 2nd quartile performance compared to peers and strong Morningstar ratings. The Index strategies also continue to track well within expected ranges.

Finally, alternatives and the Fund of Hedge Fund strategies continue to deliver exceptional relative returns for clients.

1.    As at 30 June 2025, 73% (31 December 2024: 80%) of AUM is covered by this metric. Further details about the calculation of investment performance are included in the Supplementary information section.

The adjusted operating loss in Other decreased to £21m (H1 2024: £26m) mainly reflecting lower corporate costs.

Assets under management and administration

AUMA increased by 1% to £517.6bn (FY 2024: £511.4bn):

- Total net outflows of £0.9bn include liquidity net outflows of £1.4bn. Excluding liquidity, net inflows were £0.5bn, with strong inflows in ii of £4.0bn, partially offset by outflows in Investments and Adviser.

- Market and other movements of £8.3bn, mainly reflecting positive market movements in Investments and ii.

- Corporate actions of £(1.2)bn resulting from the takeover of Tritax EuroBox.

Results summary

Adjusted net financing costs and investment return

Adjusted net financing costs and investment return resulted in a gain of £56m (H1 2024: gain £42m):

- Investment gains, including from seed capital and co-investment fund holdings of £15m (H1 2024: gains £5m).

- Net finance income of £23m (H1 2024: £30m) reflecting a lower rate of interest on cash and liquid assets.

- Higher net interest credit relating to the staff pension schemes of £18m (H1 2024: £7m) primarily reflecting an increase in the opening discount rate due to a rise in corporate bond yields, and higher costs in H1 2024 related to de-risking of the pension scheme.

1.    Investments net flows exclude Institutional & Retail Wealth liquidity.

2.    Adjusted operating loss consists of adjusted net operating revenue £1m (H1 2024: £5m) and adjusted operating expenses £22m (H1 2024: £31m). H1 2024 Adjusted operating loss included the Group's digital innovation group, partially disposed of on 13 December 2024.

Adjusting items

Restructuring and corporate transaction expenses were £41m (H1 2024: £51m). Restructuring costs of £32m (H1 2024: £45m) mainly relate to transformation programme expenses of £39m partially offset by a £10m credit relating to the assignation of previously impaired property leases. Corporate transaction costs of £9m (H1 2024: £6m) primarily related to the impact of transactions undertaken in prior periods.

Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts were £65m (H1 2024: £64m).

Profit on disposal of interests in subsidiaries and other operations in H1 2024 relates to the sale of our European-headquartered Private Equity business. See Note 4.2 for further details.

Profit on disposal of interest in associates and joint ventures in H1 2024 relates to the sale of our shareholding in Virgin Money UTM.

Change in fair value of significant listed investments of £155m (H1 2024: £(15)m) from favourable market movements in our shareholding in Phoenix.

Dividends from significant listed investments of £28m (H1 2024: £28m) relates to our shareholding in Phoenix.

Share of profit or loss from associates and joint ventures, which primarily relates to HASL, decreased to £8m (H1 2024: £21m). The HASL profit in H1 2024 benefited from investment-related gains due to favourable market conditions.

Other includes a £14m benefit from net fair value movements in contingent consideration partially offset by a £7m net expense relating to properties which are not being used operationally. See Note 4.9 for further details of other adjusting items.

Tax

The total IFRS tax expense attributable to the profit for the period is £19m (H1 2024: expense £16m), including a tax credit attributable to adjusting items of £21m (H1 2024: credit £25m), which results in an effective tax rate of 7% (H1 2024: 9%). The difference to the UK Corporation Tax rate of 25% is mainly driven by:

- Dividend income and fair value movements from our investments in Phoenix not being subject to tax.

- Pension scheme interest income included on a net of tax basis.

- Fair value movements in contingent consideration not being subject to tax.

- Prior year adjustments reflecting additional partnership income subject to tax.

The tax expense attributable to adjusted profit is £40m (H1 2024: £41m), an effective tax rate of 22% (H1 2024: 24%). This is lower than the 25% UK rate primarily due to pension scheme interest income included on a net of tax basis and the utilisation of unrecognised deferred tax assets against overseas profits.

Earnings per share

- Adjusted diluted earnings per share increased to 7.5p (H1 2024: 6.8p) due to the higher adjusted profit after tax.

- Diluted earnings per share of 13.5p (H1 2024: 9.1p) reflecting the higher adjusted profit after tax, and the benefit from the favourable market movements in our shareholding in Phoenix.

Dividends

The Board has declared an interim dividend for 2025 of 7.3p (H1 2024: 7.3p) per share. The dividend payment is expected to be £131m.

The adjusted capital generation trend is shown below:     Diagram removed for the purposes of this announcement.  However it can be viewed in full in the pdf document

Liquidity and capital

Cash and liquid resources and distributable reserves

Cash and liquid resources remained robust at £1.7bn at 30 June 2025 (FY 2024: £1.7bn). These resources are high quality and mainly invested in cash, money market instruments and short-term debt securities. Cash and liquid resources held in Aberdeen Group plc were £0.3bn (FY 2024: £0.4bn).

Further information on cash and liquid resources, and a reconciliation to IFRS cash and cash equivalents, are provided in Supplementary information.

At 30 June 2025 Aberdeen Group plc had £2.8bn (FY 2024: £2.9bn) of distributable reserves.

IFRS net cash flows

- Net cash inflows from operating activities were £241m (H1 2024: £170m) which includes outflows from restructuring and corporate transaction expenses, net of tax, of £42m (H1 2024: £31m).

- Net cash inflows from investing activities were £490m (H1 2024: £202m) and primarily reflected the maturity of cash invested in money market instruments which were not classified as cash equivalents. Inflows also included £150m of cash backing unit linked liabilities recognised at the date of the transfer of Phoenix's TIP business in March 2025.

- Net cash outflows from financing activities were £222m (H1 2024: £162m) includes £130m relating to the dividend payment.

The cash inflows and outflows described above resulted in closing cash and cash equivalents of £1,835m as at 30 June 2025 (FY 2024: £1,335m).

IFPR CET1 own funds

The indicative CET1 own funds at 30 June 2025 were £1,470m (FY 2024: £1,465m).

Key movements in CET1 own funds and respective coverage are shown in the table below.

The full value of the Group's significant listed investment in Phoenix, and the IAS19 staff defined benefit pension scheme surplus are excluded from the capital position under IFPR.

A summary of our CET1 capital coverage is shown in the table below.

1.      European-headquartered Private Equity business and Virgin Money UTM in H1 2024.

2.      First Trust funds in H1 2024.

Capital generation

Adjusted capital generation, which shows how adjusted profit contributes to regulatory capital, increased by 1% to £145m. Net capital generation increased by £7m to £111m and included the benefit of lower restructuring costs.

IFRS net assets

IFRS net assets attributable to equity holders increased to £4.9bn (FY 2024: £4.8bn) reflecting the IFRS profit before tax partly offset by dividends paid in the period:

- Intangible assets decreased to £1.4bn (FY 2024: £1.5bn) primarily due to regular amortisation. Further details are provided in Note 4.11.

- The principal defined benefit staff pension scheme, which is closed to future accrual, continues to have a significant surplus of £0.8bn (FY 2024: £0.8bn). As detailed in our Annual report and accounts 2024, we have reached agreement with the trustee of the defined benefit pension plan to utilise part of the existing surplus to fund the cost of providing defined contribution benefits to current employees. This is expected to result in an annual benefit of c.£35m to net capital generation from July 2025, with an annual review of other options including an insurance buyout. This agreement enables the Group to unlock value from the plan, while largely maintaining the surplus and retaining optionality.

- Financial investments reduced slightly to £1.6bn (FY 2024: £1.8bn). At 30 June 2025, financial investments included £685m (FY 2024: £530m) in relation to our stake in Phoenix.

Principal risks and uncertainties

The principal risks that we believe the Group will be exposed to in the second half of 2025 are the same as those set out in the Annual report and accounts 2024 across the following 9 categories: Strategic, Financial, Conduct, Regulatory and legal, Process execution, People, Technology, security and resilience, Third party and Sustainability. However, the nature of some of them continues to evolve.

Key developments in relation to our principal risks

Looking to the second half of 2025 we would highlight the following evolving factors in relation to our principal risks:

- Ongoing negotiations on tariffs with the US have the potential to cause market volatility.

- Developments in US monetary and fiscal governance could impact the US yield curve and/or the US dollar.

- The probability of a cyber-related incident continues to rise driven by organised crime and nation state actors.

- Competitor activity in key business markets has the potential to impact our business models in those areas.

- Complexities arising from regulatory change.

2. Statement of Directors' responsibilities

Each of the Directors, whose names and functions are listed on the Aberdeen Group plc website, www.aberdeenplc.com, confirms to the best of his or her knowledge and belief that:

- The condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows and associated notes, have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK.

- The interim management report includes a fair review of the information required by:

-  DTR 4.2.7R of the FCA's Disclosure Guidance and Transparency Rules Sourcebook, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated financial information and a description of the principal risks and uncertainties for the remaining six months of the year.

-  DTR 4.2.8R of the FCA's Disclosure Guidance and Transparency Rules Sourcebook, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

- As per principle N of the UK Corporate Governance Code, the Half year results 2025 taken as a whole, present a fair, balanced and understandable assessment of the Company's position and prospects.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Changes to Directors during the period

Following the announcement on 16 December 2024, Pam Kaur stepped down from the Board at the conclusion of the AGM on 8 May 2025. In May it was with deep sadness that the Company announced Michael O'Brien had passed away unexpectedly on 24 May 2025. Further to the announcement made on 28 February 2025, Siobhan Boylan formally joined the Board on 21 July 2025.

By order of the Board

3. Independent review report to Aberdeen Group plc

Conclusion

We have been engaged by Aberdeen Group plc ('the Company' or 'the Group') to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed consolidated statement of changes in equity, condensed consolidated statement of cash flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and the Disclosure Guidance and Transparency Rules (the DTR) of the UK's Financial Conduct Authority (the UK FCA).

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity (ISRE (UK) 2410) issued for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention that causes us to believe that the Directors have inappropriately adopted the going concern basis of accounting, or that the Directors have identified material uncertainties relating to going concern that have not been appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Group to cease to continue as a going concern, and the above conclusions are not a guarantee that the Group will continue in operation.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

The annual financial statements of the Group are prepared in accordance with UK-adopted international accounting standards.

The Directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted for use in the UK.

In preparing the condensed set of financial statements, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Salim Tharani

for and on behalf of KPMG LLP

Chartered Accountants
Saltire Court
20 Castle Terrace
Edinburgh
EH1 2EG

29 July 2025