AMP (AMP) H1 2025 earnings summary

Executive summary

• Underlying NPAT rose 9.2% to $131m, with EPS up 18.2% to 5.2cps, driven by strong cashflows, cost efficiency, and share buybacks; statutory NPAT fell 4.9% to $98m due to business simplification and litigation costs.

• Interim dividend of 2.0cps (20% franked) declared, with a targeted payout of 2.0cps per half through 2025.

• AUM increased 10.1% to $153.9bn, supported by positive cashflows, market movements, and strong performance in Platforms and NZ Wealth Management.

• Continued innovation in retirement solutions, digital advice, and the launch of AMP Bank Go, with a focus on margin over volume in lending.

• Partnerships in China delivered higher dividend payout ratios and strong AUM growth, with CLPC at 35% and CLAMP paying its first significant dividend at 40%.

Financial highlights

• Total revenue increased to $632m for the half, up 1.8% year-over-year; EBIT up 14.1% to $178m.

• Controllable costs fell by over 4% to $303m, driving a 14% EBIT improvement year-over-year.

• Statutory profit was $98m, slightly down half-on-half due to increased litigation and remediation costs.

• Cost to income ratio improved by almost 3% to 59.4%.

• Underlying ROE improved to 7.4% (up from 6.5% in 1H 24).

Outlook and guidance

• Margin guidance maintained at circa 43bps for platforms and 63bps for superannuation investments for FY25.

• AMP Bank NIM expected to remain at 1.3% for the full year.

• Controllable costs forecasted at $600m for FY25, including AMP Bank Go operational costs.

• Business simplification program to conclude slightly later but within the $150m pre-tax investment envelope.

• Focus for 2H25 on driving wealth flows, scaling AMP Bank Go, maintaining cost discipline, and supporting partnerships.