AMP’s first-half profit falls 43pct to $150 million

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AMP’s first-half profit falls 43pct to $150 million

AMP shares have plunged to a three-month low after the wealth manager posted a $150 million first-half bottom-line net profit, down 43 per cent from a year ago.

The drop reflected a loss on the ***** of its advice business in 2024, and the impact on its year-ago result of the ***** of AMP Capital and self-managed super fund administration and software business, as it trimmed down its business.

AMP’s underlying profit, which excludes those impacts, was up 26.4 per cent to $67 million in the December 31 half.

AMP chief executive Alexis George said that overall the firm continued to deliver on both financial performance and business performance.

Its wealth division was improving and its platform business, which enables advisers and clients to build a personalised investment portfolio, was attracting inflows.

The platform business saw underlying profit climb 18.9 per cent to $107 million, while profit from its superannuation and investments division grew 26.4 per cent to $67 million.

The banking arm, however, saw its underlying profit drop 22.6 per cent to $72 million.

“When it comes to banks, I think we all know it’s a more challenging environment for small banks,” Ms George told analysts in a conference call on Friday.”But we’ve delivered modest growth in the second half, as indicated, and continue to focus on margin.

“We continue to focus on driving efficiency and looking for those niche opportunities to add both margins and volume.”

While AMP has offered banking services for years, it officially opened a new small business and consumer digital-only bank this week.

“We do see it as an opportunity in that smaller micro (businesses) space where not many others are focused,” Ms George said, referring to businesses with fewer than 20 employees.

“As I said, it’s digital only. It’s not digital first, it is digital only, and it really is quite a unique proposition.”

“It’s also important in that it creates diversity in our customer base, but also in our deposit funding, as well as adding transaction accounts for personal customers.”

AMP has also been rolling out artificial intelligence across its contact centres and is using the technology to offer some solutions for advisors meeting with clients.

At 11.38am, AMP shares were down about 13 per cent to $1.51

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