AMP’s Underlying NPAT Rises to $236m; Statutory Profit Falls 43% to $150m
AMP Limited’s 2024 results reveal a 43% drop in statutory net profit to $150 million, offset by a 15.1% rise in underlying profit to $236 million, alongside the completion of its Advice business sale and the launch of a new digital bank.
- Statutory net profit down 43% to $150 million
- Underlying net profit after tax up 15.1% to $236 million
- Revenue increased 5% to $2.869 billion
- Final dividend declared at 1.0 cent per share, 20% franked
- Completion of Advice business sale with 30% retained interest
- Strong growth in Platforms and Superannuation & Investments
- AMP Bank prioritised margin over volume, impacting earnings
- Launch of new digital bank for small business and personal banking
- Disciplined cost control reduced controllable costs by 6.1%
- Board leadership changes with Mike Hirst appointed Chair
Financial Performance Overview
AMP Limited’s full year results for 2024 present a nuanced picture of transition and resilience. While statutory net profit attributable to shareholders fell sharply by 43% to $150 million, the company’s underlying net profit after tax (NPAT) rose by a robust 15.1% to $236 million. This divergence largely reflects one-off costs associated with the strategic sale of AMP’s Advice business and other non-recurring items.
Revenue grew 5% to $2.869 billion, driven by solid performances in AMP’s Platforms and Superannuation & Investments divisions. The company declared a final dividend of 1.0 cent per share, 20% franked, bringing the full year dividend to 3.0 cents per share, signaling a cautious but steady return to shareholders amid ongoing transformation.
Strategic Business Moves and Divisional Highlights
2024 was a landmark year for AMP, marked by the completion of the sale and partnership restructuring of its Advice business. Entireti Limited acquired AMP’s financial advice licensees, with AMP retaining a 30% stake in the new joint venture, Mutual Advice Partners Pty Ltd. This move reflects AMP’s strategic pivot to focus on its core wealth management and banking operations.
The Platforms business saw underlying NPAT increase by 18.9% to $107 million, supported by strong market conditions and a near doubling of net cash inflows to $2.8 billion. Growth in Managed Portfolios and the continued adoption of AMP’s North platform underpin this momentum.
Superannuation & Investments delivered a 26.4% rise in underlying NPAT to $67 million, with improved investment income and cost discipline reversing prior cash outflows. AMP Bank, however, experienced a 22.6% decline in underlying NPAT to $72 million, reflecting a strategic choice to prioritise margin over volume growth amid a challenging economic environment.
AMP’s New Zealand Wealth Management business continued steady growth, with underlying NPAT up 8.8% to $37 million, despite local economic headwinds. The launch of a new digital bank for small business and personal banking in early 2025 marks a significant innovation milestone, aiming to diversify revenue streams and enhance customer experience.
Cost Control and Capital Management
AMP maintained disciplined cost control, reducing controllable costs by 6.1% to $648 million and improving the cost-to-income ratio to 63.8%. The company completed a $1.1 billion capital return program initiated in 2022, including on-market share buybacks and dividends, concluding in October 2024. The Board declared a final dividend consistent with this capital management approach, balancing shareholder returns with strategic investment.
Governance and Leadership
Leadership changes included the appointment of Mike Hirst as Chair in April 2024, succeeding Debra Hazelton. The Board welcomed new non-executive directors Kathleen Bailey-Lord and Anna Leibel, enhancing governance capabilities. AMP continues to emphasize strong risk management, regulatory compliance, and sustainability, with ongoing focus on climate-related risks, cybersecurity, and operational resilience.
Looking Ahead
AMP’s strategic focus for 2025 centers on becoming a preeminent retirement specialist, leveraging its Platforms and Superannuation & Investments businesses, scaling the new digital bank, and harnessing AI to improve customer and employee experiences. The company aims to sustain growth momentum while navigating regulatory and market challenges.
Bottom Line?
AMP’s 2024 results underscore a company in strategic transition—balancing legacy challenges with digital innovation and a sharpened retirement focus.
Questions in the middle?
- How will AMP’s new digital bank perform in attracting and retaining small business customers?
- What impact will ongoing litigation and regulatory scrutiny have on AMP’s future earnings and reputation?
- How effectively will AMP leverage AI and digital tools to differentiate its retirement solutions in a competitive market?
