AMP (AMP) H1 2024 earnings summary

Executive summary

• Underlying NPAT increased 5.4% to $118 million, driven by improved Platforms and Superannuation & Investments performance, cost reductions, and improved business efficiency, while statutory NPAT fell to $103 million due to the absence of prior period asset sale gains and one-off costs.

• Controllable costs fell 6.4% to $339 million, supported by a 13% reduction in FTEs and ongoing simplification initiatives.

• Announced a transformational strategic partnership for the Advice business, with Entireti and AZ NGA acquiring licensees and AMP retaining a 30% stake in the new joint venture.

• Capital return program nearly complete, with $963 million of the $1.1 billion target delivered since August 2022.

• Interim dividend of 2.0 cents per share (20% franked) declared.

Financial highlights

• Revenue from ordinary activities was $1,720 million, up 8% year-over-year, but total revenue declined 4% due to lower Net Interest Income and NIM contraction in the Bank.

• Statutory NPAT dropped 60.5% to $103 million, reflecting the absence of prior period one-off gains from asset sales.

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

• Earnings per share and underlying profit growth were supported by improved Platforms and Superannuation & Investments, despite NIM pressure.

• AUM rose 4.5% from FY 2023 to $139.8 billion, with strong flows in Platforms and Superannuation & Investments.

Outlook and guidance

• FY24 controllable costs expected to be ~$660 million, down from $690 million, reflecting removal of Advice direct costs.

• AMP Bank FY24 NIM expected between 1.10% and 1.15%; Platforms and Superannuation & Investments revenue margins to remain broadly in line with 1H24.

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

• Strategic partnerships targeting a 10% return on investment through the cycle.

• Digital small business bank launch on track for Q1 2025, expected to diversify revenue and funding.