Despite announcing a net profit decline of 41 per cent for fiscal 2008, market participants yesterday pushed AMP's share price up 3.5 per cent to $5.09.
Earlier in the day the stock reached $5.19, an increase of 5.5 per cent on the previous day.
AMP reported a net profit of $580 million for the full year, 41 per cent lower than the $985 million recorded in the previous year.
Profits declined as a result of the economic downturn, which caused the group to suffer $260 million of investment losses over the year.
Chief executive officer Craig Dunn spoke of "very tough conditions" in 2008, but remained optimistic about the company's future.
"Over the long term AMP remains confident about growth in the wealth management sectors in key geographic markets of Australia, New Zealand and select Asian markets," Dunn said.
"The fundamentals of these markets are underpinned by ageing demographics and regulatory support for retirement savings."
But he expects investor activity to remain subdued this year.
"We expect continued market volatility through 2009 as the full consequences of the global financial crisis work their way through the economy," he said.
Underlying profit, which smoothes market volatility, declined 8.2 per cent from $882 million in 2007 to $810 million.
AMP has plenty of buffer left to cope with the challenging environment, Dunn said.
"We have acted early and decisively on our capital and funding needs to enhance and maintain our financial strength," he said.
"We still have significant flexibility [for organic growth] and to preserve our capital position against further potential market downturns."
