AMP (AMP) H2 2025 earnings summary

Executive summary

• Underlying NPAT increased 21% to AUD 285 million and EPS rose 25% year-over-year, reflecting strong operational execution and cost discipline.

• Statutory NPAT declined 11.3% to AUD 133 million, mainly due to legal settlements and business simplification costs.

• The business resolved most legacy issues, restored its reputation, recommenced dividends, and is positioned for growth in retirement and wealth segments.

• Strategic focus is on organic growth, advisor expansion, innovation in retirement solutions, and leveraging AI across the organization.

• Total AUM increased 9% to AUD 161.7 billion, supported by positive cashflows and market movements.

Financial highlights

• Revenue grew 2.8% year-over-year to AUD 1,287 million, while controllable costs fell nearly 7% to AUD 603 million, driving EBIT up over 21%.

• Cost-to-income ratio improved by more than 6% to 61.5% at the group level; return on equity increased to 8%.

• Total AUM rose 9% to AUD 161.7 billion, with platforms' net cash flows up 85% to AUD 5.1 billion.

• Final dividend of AUD 0.02 per share (20% franked), totaling AUD 0.04 for FY 2025.

• Net tangible assets per share increased to AUD 1.33.

Outlook and guidance

• Platform margins expected at 40-41 bps and super investments at 60-61 bps for FY 2026.

• AMP Bank Go targeting AUD 1 billion in deposits and NIM of 125-130 bps in FY 2026.

• Controllable costs guided at AUD 630-640 million, reflecting inflation and scaling of AMP Bank Go.

• Dividend approach to remain consistent through FY 2026 and FY 2027, with buybacks preferred for additional capital return.

• Business simplification program to complete in FY 2026 with AUD 20 million investment.