Abrdn made a pre-tax loss of -£615m last year down from a £1,115m profit in 2021, driven by a decline in investments revenue.
The company said it was “one of the toughest investing years in living memory.”
Adjusted operating profit at Abrdn fell 19% last year to £263m from £323m in 2021.
Gross inflows fell 5% to £69bn, compared to £72.3bn the previous year, while assets under management slipped 8% to £500bn from £542bn.
Net operating revenue was 4% lower at £1,456m with the full year dividend of 14.6p in line with dividend policy.
Stephen Bird, chief executive, said: “In one of the toughest investing years in living memory, the resilience we have created in our business model helped us to deliver adjusted operating profit of £263m.
“We are building a stronger Abrdn. As we exit year two of our three-year strategic plan, the structure of our group is now broadly set. We are increasingly well positioned for growth.”
During the year it completed the acquisition of Interactive Investor (ii) for £1.49bn in May.
In the seven months since joining Abrdn, ii delivered £114m in net operating revenue and £67m in adjusted operating profit, at a cost/income ratio of 41%, the company said.
Based on the seven months profits, the £1.49bn purchase price represents a multiple of 16 times annualised post-tax adjusted earnings.
Mr Bird said: “Adviser and Personal, which benefited from the acquisition of ii, both delivered increased revenue and profits.
“This provided an important offset to the impact of market conditions on our Investments business.”
Abrdn’s Personal Vector arm was restructured in 2022 to include Financial Planning, digital retirement advice, discretionary wealth and ISA and digital investing.
Personal Wealth, Abrdn’s Financial Planning operations within the Personal Vector, saw net operating revenue for 2022 fall to £87m from £92m.
Operating expenses of £82m for the year were slightly down from £84m the previous year, but that saw adjusted operating profit for Personal Wealth fall to £5m from £8m.
Personal Wealth’s assets under management fell slightly to £13.1bn from £14.4bn.
Gross flows fell to £1.5bn from £1.7bn while net flows were down to £0.3bn from £0.6bn.
Mr Bird said: “We are making progress on our commitment to focus on areas of scale and strength, and to simplify and reduce costs in the business.”
As part of that the company has today sold its discretionary asset management business discretionary fund management business Abrdn Capital to LGT Wealth Management for £140m.
Mr Bird said: “Overall, we are increasingly well positioned for the cycle turning. Our three businesses work well together and we are building the linkages that will create value across the group.
“Our capital position is strong and we are reinvesting into growth areas, while providing returns to shareholders.
“We look to the year ahead with confidence and a clear focus on delivering for clients and our wider stakeholders.”
