AMP (AMP) H2 2024 earnings summary

Executive summary

• Underlying profit rose 15.1% to AUD 236 million for FY 2024, with EPS up 25% to AUD 0.09, supported by improved business performance and a share buyback.

• Statutory NPAT fell 43% to AUD 150 million year-over-year, reflecting one-off items and prior year gains from asset sales.

• AUM increased 10.9% year-over-year, driven by positive market movements and improved flows in wealth businesses.

• The business portfolio was further simplified, with the completion of the advised transaction and a focus on growth strategies across all units.

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

Financial highlights

• Underlying EPS up 25% to 9.0cps; statutory EPS down to 5.7cps.

• Total revenue increased 5% to AUD 2,869 million, as gains in wealth management were offset by lower bank earnings due to margin compression.

• Variable costs fell 7.5%, and controllable costs dropped 6.1% to AUD 648 million, beating the AUD 660 million target.

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

• Final dividend of AUD 0.01 per share (20% franked), bringing the full-year dividend to AUD 0.03.

Outlook and guidance

• FY 2025 controllable cost target set at AUD 600 million, a further 7.4% reduction.

• Dividend guidance for FY 2025 is AUD 0.02 per half, 20% franked.

• Business simplification program to continue with up to AUD 150 million pre-tax investment.

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

• Continued investment in digital advice, AI, and operational simplification.