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 Advice business results, while statutory NPAT fell to $103 million due to absence of prior period asset sale gains and one-off costs.

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

• Announced a transformational Advice business transaction, selling majority stakes to Entireti and AZ NGA, with AMP retaining a 30% stake and an expected accounting loss of about $30 million.

• Capital return program nearly complete, with $963 million of the $1.1 billion target delivered since August 2022; interim dividend of 2.0cps (20% franked) declared.

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

Financial highlights

• Revenue from ordinary activities rose 8% year-over-year to $1,720 million, but statutory NPAT dropped 61% to $103 million due to one-off costs and lack of prior year asset sale gains.

• Underlying NPAT was $118 million, up 5.4% year-over-year; underlying EPS increased 15.8% to 4.4cps.

• Interim dividend of 2.0cps (20% franked) declared; capital management program progressing with $963 million returned.

• Group surplus capital at $676 million at period end; net tangible assets per share at $1.31.

• Earnings per share rose nearly 16% year-over-year.

Outlook and guidance

• FY24 controllable costs expected to be ~$660 million, reflecting removal of Advice direct costs; cost base targeted at $590–610 million by FY25.

• Digital small business bank launch on track for Q1 2025; business simplification investments within $60–75 million full-year guidance.

• Strategic partnerships expected to deliver a 10% return on investment through the cycle.

• Focus remains on margin management, cost control, and capital management in H2 2024.