AMP (ASX: AMP) has posted a solid set of numbers for FY24, with a 15.1% rise in underlying NPAT to $236 million. The wealth management side of the business drove much of the growth, while AMP Bank faced margin pressures.
Key Takeaways
- Wealth management shines – Platforms NPAT surged 18.9% to $107 million, and Superannuation & Investments saw a 26.4% jump to $67 million.
- Banking under pressure – AMP Bank NPAT dropped 22.6% to $72 million, impacted by tight margins and a cautious approach to lending.
- Cost discipline pays off – Controllable costs were cut by 6.1% to $648 million.
- Capital return milestone reached – AMP has now returned $1.1 billion to shareholders since 2022.
- Final dividend of 1.0 cent per share (20% franked), bringing the full-year payout to 3.0 cents per share.
What’s Driving the Results?
AMP’s wealth businesses are in strong shape, with the North platform seeing $2.8 billion in net inflows (up a massive 96.7%). Managed portfolios and innovative retirement solutions are helping attract advisers and investors. The Superannuation & Investments arm also improved cashflows, despite ongoing competitive pressures.
AMP Bank, on the other hand, is managing a tricky environment. While net interest margin (NIM) compressed to 1.26% (from 1.42%), AMP did see a return to mortgage book growth in 2H24. The launch of its new digital bank in February 2025 is a big move, with 11,600 early sign-ups already secured.
CEO Alexis George on AMP’s Progress
“2024 was another year of strategic delivery for AMP. We’ve simplified the business, hit cost targets, and completed our $1.1 billion capital return program. With strong momentum in our wealth businesses and the launch of our digital bank, we’re well positioned for growth.”
Looking Ahead
AMP is setting its sights on becoming a leading retirement specialist and digital bank. The company is targeting a 2.0 cents per share dividend per half in 2025, while continuing to focus on cost control and shareholder returns.
The stock has had a tough few years, but with solid wealth momentum and a shift towards digital banking, AMP might just be turning a corner.
