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AMP shifts focus to retirement innovation
AMP is here to play again, says Alexis George, after the firm released its latest financial update, revealing how the sale of its advice business dented its profits.
Having successfully completed the advice transaction in December, AMP outlined a plan in its latest financial results to drive growth and capitalise on opportunities in its wealth businesses.
Speaking to Super Review sister brand InvestorDaily on Friday, AMP CEO Alexis George said AMP is “here to play again”, with the goal of becoming a pre-eminent retirement specialist after exiting the advice business late last year.
The firm plans to capitalise on trends such as growing superannuation assets, an ageing population, and high household wealth by prioritising further innovation in retirement, such as new retirement modelling tools and tailored investment options, following the recent launch of its digital planning tool.
“We’ve gone through quite a simplification of the portfolio to where we were a couple of years ago, and I suppose the advice transaction that we completed was the last arm of that, barring the real estate businesses in the US,” George told InvestorDaily.
“When I look at those businesses now, and you look at where they are, and where they can compete, the wealth businesses, they’re well positioned. Their price is good, they’ve got all the options you’d expect, the digital capability is there, and also the service is there, more broadly. And we’ve been innovating in the retirement space and really getting our name back out in the market about ’We’re here to play again’.”
AMP reported a 43 per cent reduction in statutory net profit after tax (NPAT) from $265 million to $150 million in full-year 2024, on the back of business simplification costs and the sale of its advice division.
The firm’s underlying NPAT was boosted by 15.1 per cent to $236 million. Specifically, the company’s platforms saw an 18.9 per cent rise in underlying NPAT to $107 million, while superannuation and investments posted a 26.4 per cent increase, reaching $67 million, driven by positive market conditions, reduced variable costs, and improved cash flows.
Net cash outflows (excluding pension payments) hit $1 billion in superannuation and investment as “a result of resilient inflows and a focus on retention”. The figure was a notable improvement on FY2022–23 outflows of $6.4 billon that had been impacted by mandate losses.
AMP’s banking division recorded a 22.6 per cent decrease in underlying NPAT to $72 million, impacted by ongoing management of volumes and margin while developing its new digital bank.
“2024 was another year of strategic delivery for AMP as we build positive performance momentum and focus firmly on growth,” George said in Friday’s ASX update.
“We sold and transitioned the advice business, hit cost targets and completed our $1.1 billion capital return program. Our wealth businesses are competing strongly in their chosen markets, driving positive performance, and we’re launching new offers including digital advice.”
AMP declared a final dividend of 1.0¢ per share, 20 per cent franked, taking the full-year dividend to 3¢ per share.
AUTHOR
Maja Garaca Djurdjevic
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