AMP (AMP) H2 2024 earnings summary

Executive summary

• Underlying profit/NPAT rose 15.1% to AUD 236 million for FY 2024, with EPS up 25% to 9.0 cents, driven by improved business performance, cost discipline, and share buyback.

• Statutory NPAT declined 43% to AUD 150 million due to one-off items and prior year asset sale gains.

• AUM increased 10.9% to AUD 148.4 billion, supported by positive market movements and improved flows in wealth businesses.

• Completed sale of Advice business, launched a new digital bank, and returned AUD 1.1 billion to shareholders since August 2022.

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

Financial highlights

• Revenue increased 5% to AUD 2,869 million, with gains in wealth management offset by lower bank earnings due to margin compression.

• Controllable costs fell 6.1% to AUD 648 million, beating the AUD 660 million target.

• Cost-to-income ratio improved to 63.8%.

• Platforms net cashflows surged 96.7% to AUD 2.8 billion; Super & Investments net outflows improved to AUD 1.0 billion from AUD 6.4 billion.

• AMP Bank underlying NPAT fell 22.6% to AUD 72 million; NIM at 1.26%.

Outlook and guidance

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

• Board targets a dividend payout of AUD 0.02 per share per half in 2025, 20% franked, subject to conditions.

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

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

• Focus on cost discipline, digital bank rollout, and leveraging wealth business growth opportunities.