AMP (AMP) H1 2024 earnings summary

Executive summary

• Underlying NPAT increased 5.4% to AUD 118 million for 1H 2024, driven by improved business performance, cost control, and reduced Advice losses.

• Statutory NPAT fell 61% to AUD 103 million due to one-off costs and absence of prior year asset sale gains.

• Controllable costs reduced by 6.4% to AUD 339 million, with a 13% reduction in FTEs.

• Announced a transformational Advice business transaction, selling to Entireti and AZ NGA, with AMP retaining a 30% stake.

• Interim dividend of AUD 0.02 per share (20% franked) declared.

Financial highlights

• Revenue up 8% year-over-year to AUD 1,720 million, but total revenue down 4% due to lower NIM in the Bank.

• Underlying EPS increased 15.8% to 4.4 cps; statutory EPS at 3.8 cps.

• Earnings per share and underlying profit growth supported by Platforms and Super & Investments.

• AUM up 4.5% from FY 2023 to AUD 139.8 billion, with strong flows in Platforms and Super & Investments.

• Interest expense reduced by 15.6% due to debt paydown.

Outlook and guidance

• H2 2024 guidance unchanged for Bank, Platforms, and Super & Investments, with stable margins expected.

• FY 2024 controllable cost target rebased to AUD 660 million, excluding Advice.

• Business simplification spend to ramp up in H2, within AUD 60–75 million full-year guidance.

• Strategic partnerships expected to deliver a 10% return on investment through the cycle.

• Digital small business bank launch on track for Q1 2025.