Published by Global Banking & Finance Review®
Posted on March 3, 2026
3 min readLast updated: April 2, 2026
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Aberdeen’s adjusted operating profit rose 4% to £264 million for the year ended December, driven by effective cost-control measures amid ongoing transformation.
By Iain Withers
LONDON, March 3 (Reuters) - Escalating conflict in the Middle East could stoke inflation by driving energy prices higher but is unlikely to derail global growth, Aberdeen CEO Jason Windsor said on Tuesday as the British asset manager posted forecast-beating annual profit.
The results still underwhelmed investors and shares sank 8% in early trading.
A broader global sell-off in stocks deepened on Tuesday, and the FTSE 250 fell nearly 3% as investors weighed the implications of U.S. and Israeli strikes on Iran on energy prices and the global economy.
"It could be inflationary if it persists," Windsor told reporters, adding the asset manager felt the economic contagion of the conflict may be limited. "Our overriding view is that it won't have a major impact on global growth."
UAE STAFF ADVISED TO SHELTER AT HOME
Aberdeen was advising staff in its office in the United Arab Emirates to shelter at home and was helping some who were stuck in the region to get home, including via flights from Saudi Arabia, Windsor said.
The London-based company reported a 4% rise in annual profit, in part due to deeper-than-forecast cost-cutting. Still, strong performance at its consumer platform Interactive Investor was overshadowed by muted results at other units serving institutions and providing investment advice which were bleeding client cash.
European active money managers have broadly reported improved results but remain under competitive pressure from larger U.S. rivals such as BlackRock offering cheaper index-tracking funds.
Britain's Schroders agreed to a 9.9 billion pound takeover by U.S. asset manager Nuveen last month, highlighting the search for scale by European players.
FOCUSING ON SCALE IN SPECIALIST AREAS
Aberdeen can still compete with larger competitors, Windsor said, adding it was focused on scale in specialist areas within equities, fixed income and real assets.
The company posted adjusted operating profit of 264 million pounds ($353 million), up 4% on 2024, and said it had delivered 180 million pounds of cost savings, exceeding its 150 million target.
Aberdeen added, however, that its advice business would not hit its 1 billion pound net inflow target until 2027.
The company had already reported a 9% rise in managed assets to 556 billion pounds and net outflows of 3.9 billion pounds - at a time when many rivals have recorded inflows - in a trading update in January.
($1 = 0.7488 pounds)
(Reporting by Iain Withers in LondonAdditional reporting by Rishab Shaju in BengaluruEditing by David Goodman and Bernadette Baum)
Aberdeen's annual profit rose by 4% year over year.
The profit increase was driven by effective cost-control measures.
Aberdeen posted an adjusted operating profit of 264 million pounds.
The previous year's adjusted operating profit was 255 million pounds.
The article was reported by Rishab Shaju and edited by Rashmi Aich.
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