AMP has reported a 5.4 per cent increase in underlying net profit after tax (NPAT) of $118 million for the half-year ending 30 June, up from $112 million in 1H23.
Statutory NPAT fell from $261 million in the prior corresponding period to $103 million during the half, which AMP said mainly reflected a gain of $209 million on the sale of its AMP Capital and SuperConcepts businesses.
Moreover, AMP Bank delivered an underlying NPAT of $35 million, down 38.6 per cent on 1H23. Net interest income decreased by 18.5 per cent while net interest margin remained steady at 1.14 per cent.
It also confirmed that the launch of the company’s digital small business bank is on track for 1Q25 as part of its strategy to diversify revenues and funding mix in AMP Bank.
AMP’s platforms business recorded a 22.7 per cent increase in underlying NPAT to $54 million, which was said to have been predominantly driven by stronger market conditions and disciplined cost control.
Meanwhile, the underlying NPAT loss of AMP’s advice business narrowed from $25 million in 1H23 to $15 million in 1H24, which AMP similarly said reflected its continued disciplined cost management.
“We have made good progress this half on our key strategic commitments, and we have positive momentum heading into the second half of the year,” AMP chief executive Alexis George said.
“We have continued to deliver on simplification and cost reduction, while also driving growth in our wealth businesses and returning capital to shareholders.”
Meanwhile, the firm’s super and investments arm reported underlying NPAT of $34 million, an increase of $6 million (21.4 per cent) on 1H23, driven by lower variable costs, higher investment income and continued cost discipline, AMP confirmed.
According to George, the company has “significantly strengthened” its member proposition with strong investment returns, competitive fees and a compelling insurance offering, coupled with reduced outflows and improved retention in this business.
“In platforms, our ongoing focus on the IFA market is driving flows, and we continue to build momentum in our managed portfolios. The innovative MyNorth Lifetime retirement solution is gaining traction with IFAs and is an important differentiator in conversations with advisers about the benefits of choosing North,” she said.
Also on Thursday, AMP announced a “strategic partnership” that will see it sell a majority stake of its advice licensees to Entireti and its minority stakes in 16 advice practices to AZ NGA – this, the firm said, will create a “sustainable business model for AMP Advice” and transform the advice landscape in Australia.
Providing an update on the third tranche of its capital return program, which was temporarily paused last year, AMP confirmed that the program is still underway as it continues to deliver on its commitment to return $1.1 billion to shareholders.
“Our capital management program remains a focus and the board is pleased to declare an FY24 interim dividend of 2 cents per share, 20 per cent franked,” George said.
The interim dividend, according to AMP, will represent $52 million from tranche three, which has returned $963 million to date.
In an update from February, George explained that the company now has a “clear strategy” focused on three areas.
“The first is to drive the profitability of our businesses, AMP Bank, master trust, advice, platforms and New Zealand. The simplification program and investment we’ve undertaken across the portfolio is delivering positive outcomes for our customers and provides a foundation for sustainable growth,” she said at the time.
The second is “efficient cost and capital management”, while the third includes building its capabilities across the wealth value chain and large customer base to create new sources of revenue and lasting points of differentiation with customers.
