AMP (AMP) H2 2024 earnings summary

Executive summary

• Underlying NPAT rose 15.1% year-over-year to $236 million, with underlying EPS up 25% to 9.0cps, supported by improved business performance, cost discipline, and a share buyback.

• AUM increased 10.9% to $148.4 billion, driven by positive market movements and improved flows in wealth businesses.

• $1.1 billion in capital returned since August 2022, reducing shares on issue by 22%.

• Strategic priorities delivered: completed Advice transaction, launched new digital bank, and advanced AI initiatives.

• Customer satisfaction and staff engagement improved, and carbon neutrality maintained for the 12th consecutive year.

Financial highlights

• Total revenue declined 1.1% year-over-year to $1,252 million, as gains in wealth management were offset by lower bank earnings due to margin compression.

• EBIT increased 20.2% to $310 million; statutory NPAT fell 43.4% to $150 million due to prior year one-off gains and business simplification costs.

• Controllable costs fell 6.1% to $648 million, beating the $660 million target; variable costs reduced 7.5%.

• Cost-to-income ratio improved by 2.7 percentage points to 63.8%.

• Final dividend of 1.0 cent per share (20% franked), bringing the full-year dividend to 3.0 cents.

Outlook and guidance

• FY25 controllable cost target set at $600 million, a further 7.4% reduction, with business simplification program on track.

• Platform margin forecast at 43bps, super/investments margin at 63bps, and bank NIM expected to remain flat year-over-year.

• Dividend guidance for FY25 is 2.0 cents per half, 20% franked, subject to economic conditions.

• Focus remains on cost discipline, digital bank rollout, and leveraging wealth business growth opportunities.

• Partnerships anticipate a combined -10% p.a. return on investment through the cycle.