AMP (AMP) H1 2025 earnings summary

Executive summary

• Underlying NPAT rose 9.2% to $131 million for 1H 25, driven by strong cashflows, disciplined cost management, and improved earnings in Platforms, AMP Bank, and NZ Wealth Management.

• Statutory NPAT was $98 million, down 4.9% year-over-year, reflecting business simplification, litigation, and remediation costs.

• EPS increased 18.2% to 5.2 cents per share, supported by improved business performance and share buybacks.

• Interim dividend of 2.0 cents per share (20% franked) declared, with a targeted payout of 2.0 cents per share per half through 2025.

• AUM increased to $153.9 billion, up 10.1% year-over-year, driven by positive cashflows and market movements.

Financial highlights

• Total revenue grew to $632 million for the half, with EBIT up 14.1% to $178 million.

• Controllable costs fell by 4.4% to $303 million, driving improved cost-to-income ratio and offsetting inflation.

• Cost-to-income ratio improved to 59.4%, down 2.9 percentage points year-over-year.

• Underlying ROE improved to 7.4% from 6.5% in 1H 24.

• Investment income declined 17.1% due to capital returns and interest rate environment.

Outlook and guidance

• FY25 AUM-based revenue margins expected at ~43bps for Platforms and ~63bps for Super & Investments.

• AMP Bank NIM expected to remain at 1.30% for FY25.

• Controllable costs forecasted at $600 million for FY25, including AMP Bank GO operational costs.

• Dividend payout target of 2.0 cents per share per half reaffirmed for 2025, subject to economic conditions.

• Focus for 2H25 on driving wealth flows, scaling AMP Bank GO, maintaining cost discipline, and supporting partnerships.