AMP reported a net loss of $252 million on Thursday, compared to a $177 million profit a year earlier, while its underlying net profit after tax increased 52.8 per cent to $356 million on the back of strong results by AMP Bank.
AMP Bank saw its underlying net profit after tax expand by 38 per cent to $153 million, while Australian Wealth Management total assets under management (AUM) increased 8 per cent to $134 billion on the back of improved investment markets and a reduction in net cash outflows.
“We have set a clear strategy to drive two simpler and more efficient businesses, well placed to compete, grow and deliver value in a highly dynamic market,” said AMP chief executive Alexis George.
“We’ve achieved a solid underlying profit result, which shows the strength of our bank, growth of the North platform with increased inflows from external financial advisers, and the significant cost savings achieved from across the business, in line with our targets.”
AMP Capital reported an underlying net profit of $154 million, up 18 per cent from $131 million in FY20, supported by performance fees earned from the sale of infrastructure assets in closed-end funds, including the sale of Angel Trains, the largest rolling stock company in the UK and in ESVAGT, a leading offshore vessels owner and operator in the North Sea.
AMP Capital’s AUM of $177.8 billion declined 6.3 per cent during the year reflecting capital returned to clients in infrastructure, the transition of the AMP Capital Diversified Property Fund (ADPF) and the transition of the New Zealand Wealth Management mandate.
Looking forward, Ms George focused on AMP’s transformation.
“We have good momentum in the transformation of AMP, repositioning our core capabilities to take advantage of the opportunities ahead of us, as we progress towards and beyond demerger as a simpler and purpose-led business.”
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