Underlying NPAT up 15.1% with strong net cashflow momentum in wealth businesses
Overview
- Underlying Net Profit After Tax (NPAT)1 up 15.1% to $236 million (FY 23: $205 million)
- Platforms underlying NPAT up 18.9% to $107 million (FY 23: $90 million); strong net cashflow momentum, up 96.7%
- Superannuation & Investments underlying NPAT up 26.4% to $67 million (FY 23: $53 million), reflecting positive market conditions, reduced variable costs and improved cashflows
- AMP Bank underlying NPAT reduced 22.6% to $72 million (FY 23: $93 million); ongoing management of volumes and margin while developing the new digital bank
- New Zealand Wealth Management underlying NPAT up 8.8% to $37 million (FY 23: $34 million), with continued diversification of revenue and disciplined cost control
– Statutory NPAT of $150 million (FY 23: $265 million), reflecting business simplification spend and the loss on sale of the Advice business. FY 23 reflected the gain on sale of AMP Capital and SuperConcepts
– Controllable costs down 6.1% to $648 million, in line with FY 24 commitment
– Successful completion of AMP Advice transaction in December 2024
– Underlying EPS up 25% to 9.0 cents per share reflecting improved earnings and the positive impact of the share buyback
– Capital management: Returned $1.1 billion capital since August 2022
– FY 24 Final dividend of 1.0 cent per share, 20% franked, declared today, taking the FY 24 full year dividend to 3.0 cents per share
AMP Chief Executive Alexis George said:
“2024 was another year of strategic delivery for AMP as we build positive performance momentum and focus firmly on growth.
“We sold and transitioned the Advice business, hit cost targets and completed our $1.1 billion capital return program. Our wealth businesses are competing strongly in their chosen markets, driving positive performance, and we’re launching new offers including digital advice.
“In our North platform there has been continued adviser take up of our innovative retirement products and managed portfolios, which is driving inflows. In Superannuation & Investments, our strong member proposition, including top-quartile investment returns for the year, are supporting
the continued improvement in cashflows.
“We saw improving trends in AMP Bank in the second half of the year, including a return to growth in the mortgage book as previously indicated. We continue to prioritise margins in a competitive environment, and this month’s launch of our new digital bank is an important way to start to
address the funding and revenue mix.
“We were disciplined in driving efficiencies through the businesses and remain committed to delivering our cost commitments for FY 25. The completion of the $1.1 billion capital return program was an important milestone, and the Board has today declared a final dividend of 1.0 cent pershare, 20% franked taking the full year dividend to 3 cents per share.
“Having successfully completed the Advice transaction in December 2024, AMP is positioned to drive growth and build on opportunities in our wealth businesses to become a pre-eminent retirement specialist, and as a leading digital bank.”
Business unit results
Platforms
Underlying NPAT increased 18.9% to $107 million (FY 23: $90 million), driven by strong market conditions, positive net cashflow momentum and cost discipline. Controllable costs reduced by 2.3% to $169 million (FY 23: $173 million). Margin compression to 45bps (FY 23: 47bps) was driven by AUM mix changes, with higher margin managed funds reducing as a proportion of total AUM, which was partly offset by growth in Managed Portfolios.
Net cashflows (excluding pension payments) were $2.8 billion, up 96.7% (FY 23: $1.4 billion), driven by higher inflows benefitting from continued growth in Managed Portfolios, which reached $19.1 billion. During FY 24, North signed 99 new distribution agreements with AFSLs, and activated ~140 net new advisers with FUA >$1 million (net figure excludes advisers exiting the industry). AMP’s
innovative retirement solutions continue to drive new adviser interest in North.
Superannuation & Investments
Underlying NPAT increased 26.4% to $67 million (FY 23: $53 million), with revenue margin at 63bps (FY23: 64bps). Disciplined cost management resulted in controllable costs of $170 million (FY 23: $174 million), and variable costs reduced 9.2% reflecting lower investment management expenses as a
result of simplification activity.
Net cash outflows (excluding pension payments) of $1.0 billion improved from net cash outflows of $6.4 billion in FY 23 (result had reflected a mandate loss in 2H 23), as a result of resilient inflows and a focus on retention.
AMP Bank
Underlying NPAT of $72 million (FY 23: $93 million) reflects subdued volume growth as a result of prioritising margins. Net Interest Margin (NIM) for the year was 1.26% (FY 23: 1.42%), with NIM compression moderating over the second half of the year. Growth in the residential mortgage book returned in 2H 24, driven by selective price changes and a focus on the self-employed segment. Credit quality remained strong, with 90+ days mortgage arrears at 0.76%.
Controllable costs reduced 11.3% through disciplined cost out initiatives and reduced project spend which was implemented to offset the declining margin.
The public launch of the small business and consumer digital bank in February 2025 was delivered on time and on budget. This launch will be supported by marketing focused on digital channels, including social media. The new digital bank secured 11,600 early sign ups ahead of release.
New Zealand Wealth Management
Underlying NPAT was $37 million (FY 23: $34 million). AUM based revenue increased slightly to $91 million (FY 23: $88 million), and diversification of revenue continued with 35% of revenue coming from non-AUM business lines. Controllable costs reduced to $34 million (FY 23: $36 million), despite ongoing inflation in this market.
Net cashflows grew 17.2%, with improved retention in corporate superannuation despite a highly competitive market and challenging economic environment.
Group
Group earnings improved with NPAT (underlying) loss of $47 million in FY 24, reduced from $65 million loss in FY 23.
This was predominantly driven by an improvement in Other Partnership earnings, which increased 68.4% as US real estate valuations within the PCCP sponsor investment improved following a challenging FY 23. The contribution from China partnerships of $47 million (FY 23: $39 million) reflects China Life Pension Company earnings normalising following regulatory changes impacting the 2H 23 result.
Cost out initiatives reduced Group controllable costs by 9.8%, which included absorbing inflationary pressures and previously announced stranded costs. The reduction in investment income (down 46.9%) reflects lower capital levels given the capital returned to shareholders as part of Tranche 3 of the capital management program.
Capital and liquidity
The capital management program has resulted in $1.1 billion returned to shareholders since August
2022.
The Board has resolved to declare a final dividend of 1.0 cent per share, 20% franked, and to target a dividend payout of 2.0 cents per share per half through 2025, subject to economic conditions and other uses of capital.
The future approach to capital management will balance the need to manage the balance sheet through the cycle; grow the business; and enhance shareholder returns and return excess capital if appropriate.
Briefing
More detailed information on the FY 24 result is available in the FY 24 Presentation and AMP Data Pack, available at AMP's shareholder centre. An analyst briefing, starting at 11.00am, can be viewed (listen only) via webcast at AMP FY 24 Results Webcast.
All amounts are in Australian dollars (A$) unless otherwise stated.
Growth is the percentage increase on prior corresponding period.
Authorised for release by the AMP Limited Board.
1. Net profit after tax (underlying) represents shareholder attributable net profit or loss after tax excluding non-recurring revenue and expenses. NPAT (underlying) is AMP’s preferred measure of profitability as it best reflects the underlying performance of AMP’s business units. FY 23 has been restated to remove Advice discontinued operations