Why Did AMP’s NPAT Rise Only Slightly Despite Stable Revenue in 1H 2025?
AMP Limited reported a modest increase in underlying net profit after tax to $236 million for the first half of 2025, supported by steady revenues and disciplined cost management across its key business units.
- Underlying NPAT rises 4.4% to $236 million
- Stable revenue with mixed performance across AMP Bank, Platforms, and Wealth Management
- Strong capital adequacy with Group CET1 surplus maintained
- Interim dividend declared at 20% franked
- Loan impairment expenses remain low, supporting bank profitability
AMP’s Financial Performance in 1H 2025
AMP Limited’s first half 2025 results reveal a company maintaining steady ground amid a complex financial landscape. The group’s underlying net profit after tax (NPAT) increased slightly by 4.4% to $236 million, reflecting stable revenue streams and effective cost controls. This performance underscores AMP’s resilience in its core wealth management and banking operations despite ongoing market uncertainties.
Revenue across AMP’s business units remained largely consistent with the prior corresponding period, with total revenue holding at approximately $632 million. The company’s diversified portfolio, spanning AMP Bank, Platforms, Superannuation & Investments, and New Zealand Wealth Management, showed mixed but generally stable results. Notably, AMP Bank posted a 2.5% increase in net interest income, supported by a modest rise in residential mortgage lending and a stable net interest margin of 1.30%.
Business Unit Highlights
The Platforms division experienced a 2.4% increase in AUM-based revenue, buoyed by net cash inflows of $2.3 billion, despite some outflows in external platforms. Superannuation & Investments saw a slight decline in net cashflows, reflecting broader market conditions, but maintained a solid AUM base of $58.5 billion. New Zealand Wealth Management reported a modest 1.5% revenue increase, with net cashflows improving to $97 million, supported by growth in KiwiSaver and other retail funds.
Cost management remained a focus, with controllable costs excluding discontinued operations rising marginally but the cost-to-income ratio improving to 59.4%. Loan impairment expenses stayed low at 0.15% of total loans, indicating sound credit quality within AMP Bank’s portfolio. The company’s capital position remains robust, with a Common Equity Tier 1 (CET1) capital ratio of 10.3% and a surplus capital buffer of $211 million, ensuring regulatory compliance and financial flexibility.
Dividend and Market Position
AMP declared an interim dividend of 4.5 cents per share, fully franked at 20%, reflecting confidence in ongoing cash flow generation and capital strength. The company’s market share in Australian superannuation and retail managed funds remains stable, holding second and third positions respectively in key segments. AMP continues to leverage its platform and wealth management capabilities to sustain competitive positioning in both Australia and New Zealand.
While the results do not signal dramatic growth, they highlight AMP’s steady execution and prudent financial stewardship. The company’s focus on operational efficiency, capital adequacy, and disciplined lending practices positions it well to navigate evolving market conditions and regulatory expectations.
Bottom Line?
AMP’s steady half-year results set the stage for cautious optimism as it balances growth ambitions with capital discipline in a competitive financial services market.
Questions in the middle?
- How will AMP’s Platforms division respond to competitive pressures and net cashflow volatility in the second half?
- What impact will rising interest rates have on AMP Bank’s net interest margin and loan impairment outlook?
- Can AMP sustain or grow its dividend payout amid ongoing investment in technology and regulatory compliance?
