AMP Limited continues to benefit from its merger with AXA Asia Pacific, having recorded a 2 per cent increase in the company’s annual profit.
AMP reported a net profit of $704 million for the 2012 financial year, compared with $688 million in 2011.
The group declared a final dividend of 12.5 cents per share, 65 per cent franked.
AMP also reported an underlying profit of $955 million, compared with $909 million for the 20011 financial year.
AMP chief executive Craig Dunn said the results were encouraging, with the company well-positioned to meet broader changes and challenges in 2013.
“The strong performance of our wealth management business reinforces the benefits of the merger with AXA, with a suite of contemporary products and services that cater for all key market segments, supported by Australia’s leading financial network,” Mr Dunn said.
“The ongoing strengthening of our core Australian business, along with our expansion into the self-managed fund sector and selected offshore markets through AMP Capital continue to provide further opportunities for growth.”
Mr Dunn added he believed the company would be well positioned to respond to changing consumer behaviour, changing technology and regulatory reforms.
AMP said the risk insurance market was challenging, with declining insurance profits in Australia and New Zealand due to an increase in policy lapse rate and higher claims costs.
AMP’s business model was not immune to the insurance environment, Mr Dunn said, adding that AMP would continue to build its self-managed super fund (SMSF) presence as a key part of their future.
“The number of SMSF accounts under administration tripled during the year through organic client growth, along with the acquisition of administration services provider Cavendish,” the report said.
“The AXA merger means that we now have two of the fastest growing super funds which are generating significant new net flows,” Mr Dunn added.
The report said that 81 per cent of client funds managed by AMP Capital met or exceeded benchmark over the past 12 months.
Mr Dunn said that in the past 12 months, AMP had grown its adviser numbers aggressively, delivered successful results and prepared the business for change.
The business environment would remain challenging for 2013, but improvements in investor sentiment both domestically and internationally would have a positive impact, he said.
