AMP plans to expand its distribution offshore by taking a partnership formula it is using in Japan to other parts of the world, its chief executive said yesterday.
In unveiling the financial services giant’s annual earnings results, Craig Dunn said AMP Capital’s partnership with Mitsubish UTJ Bank (MUTB), struck late last year, was a template for generating revenue offshore.
“The MUTB alliance is very very significant,” Dunn told a briefing.
“We have similar scale of access as we have in Australia through [AMP Financial Services] into Japan now through MUTB, the second largest savings market in the world.
“We’re very confident in our ability to grow offshore in those select markets and deliver value to shareholders through that.”
AMP intends to invest in local distribution teams in Tokyo, London, Beijing, Hong Kong and Bahrain, a company presentation said.
Asked how large AMP’s international business would get, Dunn said: “We haven’t set specific targets in terms of the size of those operations. What we are very pleased with is the strategy that we’ve been pursuing.”
He said AMP Capital has signed a memorandum understanding with China Life, which it has extended for two years. AMP is also reviewing opportunities in India, Dunn said.
As part of AMP’s partnership with MUTB, the Japanese business bought 15 per cent of AMP Capital for $425 million, and has an option to raise its stake to 20 per cent.
Dunn’s comments were part of AMP’s full-year results presentation.
The group’s net profit fell 11 per cent over the year to $688 million, mainly on the back of costs related to its Axa acquisition, which Dunn said was delivering forecast-beating savings.
In other comments, Dunn said AMP was doing its best to ‘get on with things’ ahead of Future of Financial Advice (FOFA) reforms.
Unlike other parts of the industry, AMP is not pushing to delay the start of FOFA to align with the 1 July 2013 start date of the Stronger Super legislation.
“There are issues around the timing of the legislation but in the meantime, we’re getting on and changing the business ahead of that,” he said.
“We’re not asking for a delay in the legislation.”
