AMP provided a good FY25 earnings report with a growth in underlying profits and better assets under management, which inspired investor confidence. Underlying NPAT reported by the financial services group increased by 20.8 per cent to $285 million.
Results showing the improvement in profitability of wealth and investment platforms. Total assets under management have improved by 9 per cent to $161.7 billion due to strong net cash flows and favourable trends in the market.
However, the statutory NPAT applied the settlement of old legal settlements and was lower at A133m.
The AMP FY25 investor update reveals that the company is in the process of developing a steady strategic momentum in the different divisions in the face of market pressure.
AMP’s underlying profit growth and increase in assets under management are reflected in FY25 earnings results. [AMP]
What Drove AMP’s Profit Increase In FY25?
AMP realised a significant improvement in underlying NPAT that was attributed to good performances in various business units.
Underlying NPAT increased by 9.3 per cent to $106 million through the Platforms division, in which net cash flows improved, and advisers’ traction was positive.
Superannuation and Investments were 14.8 per cent up to $62 million, indicating improved investment earnings and high retention percentages. New Zealand Wealth Management also achieved growth having a rise in underlying NPAT to $39 million at 5.4 per cent.
At AMP Bank, underlying NPAT was reduced slightly to $55 million, and this was affected by the scaling costs of AMP Bank GO. All these outcomes made the foundation of AMP’s financial performance for FY25.
How Did AMP Manage Costs And Dividends This Year?
The managed costs decreased by 6.9 per cent to A$603 million, which demonstrates restrained costs in the operations of AMP. The earnings per share increased by 25.6 per cent to 11.3 cents, with cost gains contributing to it.
The board has announced a final dividend of 2.0 cents per share, 20 per cent franked, which will result in the overall FY25 payout of dividends amounting to 4.0 cents per share, in accordance with guidance.
All these are pointers that AMP still has a focus on giving back to the shareholders as it overcomes regulatory and legacy cost pressures that hit statutory profits.
What Does The Asset Growth Signal For Investors?
The total AUM was $161.7 billion, which is 9 per cent higher than last year. This increase was supported by robust inflows and a favourable market environment within the wealth businesses at AMP.
The Net cashflows after pension payments shot up, especially in Platforms which were a result of enhanced advisor interaction and uptake of managed portfolio products.
AMP has been actively investing in retirement and digital tools to enhance the loyalty of the client and the momentum of cash flow in future. This asset growth is the foundation of the existing valuation and future segments where AMP has a competitive edge.
AMP has increased its asset base, which is indicative of increased inflows and favourable markets in FY25. [AMP]
How Is AMP Handling Challenges In Banking And Legal Costs?
The performance of AMP Bank was fluctuating, and the core banking business recorded strategic progress while the AMP Bank GO achieved planned scaling costs.
These investments will be in line with the overall growth strategy of AMP in digital banking. Meanwhile, the company swallowed old legal and litigation settlements, which the statutory NPAT was bearing.
Nevertheless, the structural results underscoring underlying show that AMP is coping with structural issues and shifting to greater long-term returns as the cost structures keep on optimising.
AMP’s Outlook: Stability And Strategic Focus
In the future, the management of AMP pointed out wealth, superannuation, and investment development. Well-organised cost base and robust net cash flow patterns are likely to provide consistent earnings growth.
The business intends to maintain inflows of product management, increase adviser distribution channels, and increase digital banking services through AMP Bank GO.
Further investment in member-driven offers and online channels has been at the core of the AMP strategy of realising steady returns and a competitive position.
AMP is concerned with the growth of wealth and digital banking as a long-term strategy. [Shutterstock]
Also Read: AMP Names Blair Vernon CEO as Alexis George Signals Retirement
FAQs About AMP Earnings Report FY25
Q1: What was AMP’s underlying NPAT for FY25?
A1: AMP reported underlying NPAT of A$285 million, up 20.8 per cent year-on-year.
Q2: How much did total assets under management grow?
A2: Total AUM increased 9 per cent to A$161.7 billion in FY25.
Q3: What dividend did AMP declare for FY25?
A3: AMP declared a final dividend of 2.0 cents per share, bringing total FY25 dividends to 4.0 cents per share.
Q4: Did statutory NPAT fall in FY25?
A4: Yes, statutory NPAT declined due to legal and remediation costs, even as underlying profit rose
