AMP reported a 9.2% increase in underlying net profit after tax to $131 million for the first half of 2025, driven by robust cashflow growth and steady performances across its wealth and banking divisions. The company also declared a 2.0 cents per share interim dividend, maintaining disciplined cost control amid ongoing strategic investments.
- Underlying NPAT rises 9.2% to $131 million
- Platforms cashflows nearly double, boosting earnings
- AMP Bank GO digital challenger bank gains 7,500 customers
- Controllable costs down 4.4%, reflecting cost discipline
- Interim dividend declared at 2.0 cents per share, 20% franked
Strong Earnings Growth Amid Strategic Focus
AMP Limited has delivered a solid first half performance for 2025, with underlying net profit after tax (NPAT) climbing 9.2% to $131 million compared to the prior corresponding period. This growth was underpinned by impressive cashflow momentum in its Platforms business and steady contributions from its Superannuation & Investments and AMP Bank divisions.
Despite a slight dip in statutory NPAT to $98 million, largely due to planned business simplification and litigation costs, AMP’s underlying results highlight the effectiveness of its disciplined strategy execution and pivot towards growth areas.
Platforms and Cashflow Drive Momentum
The Platforms segment was a standout, with underlying NPAT increasing 7.4% to $58 million. Net cashflows nearly doubled to $2.3 billion, driven by the expansion of Managed Portfolios, which now total $21.8 billion in funds under administration (FUA). The business also signed 34 new distribution agreements and onboarded 25 new advisers with significant funds under advice, reflecting strong market demand for AMP’s innovative retirement solutions and platform features.
AMP’s focus on retirement solutions continues to pay dividends, with its MyNorth Lifetime product and the newly launched Lifetime Super gaining traction among members. This innovation is also being leveraged in the New Zealand market, where underlying NPAT rose 11.8% to $19 million, supported by a strategic shift towards retirement-focused offerings.
Banking Division Shows Steady Progress
AMP Bank reported a modest 2.9% increase in underlying NPAT to $36 million, supported by careful margin management and growth in higher-margin investor lending. The bank’s net interest margin improved slightly to 1.30%, while the residential mortgage book grew marginally. Notably, AMP Bank GO, the company’s digital challenger bank launched in February 2025, has attracted approximately 7,500 customers and $123 million in transactional balances, with ongoing feature rollouts planned to enhance its appeal to personal and small business segments.
Cost Discipline and Dividend Policy
AMP maintained strong cost discipline, reducing controllable costs by 4.4% to $303 million despite inflationary pressures. This efficiency supports the company’s commitment to sustainable earnings growth. Reflecting confidence in its financial position, AMP declared an interim dividend of 2.0 cents per share, 20% franked, consistent with its guidance. However, the Dividend Reinvestment Program remains paused, a factor investors will watch closely.
Looking ahead, AMP’s management emphasizes continued innovation in retirement solutions and digital banking, alongside disciplined growth and cost management, as key drivers for the remainder of the year.
Bottom Line?
AMP’s disciplined growth and innovation set the stage for a pivotal second half, with digital banking and retirement solutions in sharp focus.
Questions in the middle?
- How will AMP Bank GO’s customer growth impact overall banking profitability in FY25?
- What are the potential effects of paused dividend reinvestment on shareholder returns?
- Can AMP sustain Platforms’ cashflow momentum amid competitive pressures?