Slimmed-down AMP posts small rise in first-half profit

[Pelican Press 0]

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Slimmed-down AMP posts small rise in first-half profit

Financial services company AMP has posted a small rise in overall profit despite a hit to the banking division from a housing market slowdown.

The underlying net profit after tax rose 5.4 per cent to $118 million in the first half of 2024, the company said on Thursday.

AMP Bank reported an underlying net profit of $35 million, slashed from $57 million a year earlier, as net interest margins came under pressure from stiff competition on mortgage and ******** rates.

A small business and consumer digital bank is on track to launch in the first three months of 2025 to help diversify revenue and funding.

“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.

After being stung by regulators for selling insurance to ***** people, the company said it had “strong investment returns, competitive fees and a compelling insurance offering”.

Superannuation and investments posted an underlying net profit of $34 million, up from $28 million in the first half of 2023, with stable margins and an ongoing reduction in outflows.

AMP said the superannuation business was positioned to retain and acquire new members after achieving an 11.14 per cent investment return for AMP’s largest fund, the MySuper 1970s super option.

The financial services arm posted a loss of $15 million, an improvement on the loss of $25 million a year earlier, as financial advisers continue to leave.

A new strategic partnership for the advice business “continues the transformation of AMP,” Mr George said, as the once-mighty financial services continues to simplify itself.

Financial advice business Entireti has agreed to buy AMP’s financial services licensees Charter, Hillross and AMP Financial as well as Jigsaw for $10.2 million, with AMP to retain an equity stake in the new ****** venture.

Additionally, AMP’s stake in 16 financial advice practices will be acquired by AZ Next Generation Advisory for $82.2 million.

Assets under management-based revenue was steady at $44 million in the New Zealand wealth management arm despite increased cost pressures but the economic environment “******** challenging”, the company said.

AMP declared an interim dividend of two cents a share, 20 per cent franked.

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