How AMP’s Digital Bank and Wealth Flows Powered a 9.2% NPAT Surge
AMP Limited reported a 9.2% rise in underlying NPAT to $131 million for the first half of 2025, driven by growth in wealth management cashflows and cost efficiencies. The company declared a 2.0 cents per share interim dividend and reaffirmed its full-year guidance amid ongoing digital banking expansion and AI integration.
- Underlying NPAT increased 9.2% to $131 million
- Controllable costs reduced by 4.4%, improving cost-to-income ratio
- Platforms business NPAT up 7.4%, driven by managed portfolio growth
- Successful launch and scaling of AMP Bank GO with $123 million in transactional balances
- China Life partnerships contributed strongly, with 35% growth in earnings
Solid Financial Performance Amid Strategic Execution
AMP Limited has delivered a robust first half in 2025, reporting a 9.2% increase in underlying net profit after tax (NPAT) to $131 million. This growth was underpinned by strong cashflow momentum in its wealth management businesses and disciplined cost control, which saw a 4.4% reduction in controllable costs. The company’s cost-to-income ratio improved by nearly 3 percentage points to 59.4%, signaling enhanced operational efficiency despite inflationary pressures and investments in new initiatives.
Wealth Management and Digital Banking Drive Growth
The Platforms division, a key growth engine for AMP, posted a 7.4% rise in NPAT, buoyed by a near doubling of net cashflows to $2.3 billion and continued expansion of its managed portfolios, now valued at $21.8 billion. Meanwhile, the Superannuation & Investments segment showed signs of stabilisation with improved retention and positive cashflows in the second quarter, supported by strong investment performance.
On the banking front, AMP Bank reported a 2.9% increase in underlying NPAT, benefiting from growth in higher-margin investor lending and a slight improvement in net interest margin to 1.30%. The launch of AMP Bank GO, a digital challenger bank targeting personal and small business customers, has gained early traction with $123 million in transactional balances and over 7,500 customers within 20 weeks of launch. The rollout of innovative features, including Australia’s first numberless debit cards for small businesses and a partnership with Qantas to offer points rewards, positions AMP Bank GO as a competitive player in the digital banking space.
Strategic Partnerships and International Exposure
AMP’s strategic joint ventures with China Life continue to be a significant contributor, with earnings from these partnerships rising 35% year-on-year. The company holds stakes in China Life AMP Asset Management Company and China Life Pension Company, both benefiting from China’s expanding pension market and regulatory reforms. These partnerships provide AMP with valuable exposure to one of the world’s largest and fastest-growing asset management markets.
Outlook and Priorities for the Second Half
AMP has maintained its full-year 2025 guidance, expecting controllable costs around $600 million and net interest margins at AMP Bank to remain stable. The company plans to continue driving flows in its wealth businesses, scaling AMP Bank GO, and embedding AI technologies to enhance adviser and customer experiences. The ongoing business simplification program, with $60 million of investment remaining, is expected to complete in fiscal 2026, further supporting cost discipline and operational agility.
With a declared interim dividend of 2.0 cents per share, 20% franked, AMP signals confidence in its financial position and growth trajectory. The company’s focus on innovation, digital transformation, and strategic partnerships positions it well to navigate evolving market dynamics and competitive pressures.
Bottom Line?
AMP’s disciplined execution and digital innovation set the stage for sustained growth, but investors will watch closely how AI integration and business simplification unfold in the coming year.
Questions in the middle?
- How will AMP’s AI initiatives tangibly impact adviser productivity and customer engagement?
- What is the growth potential and risk profile of AMP’s China Life joint ventures amid regulatory changes?
- Can AMP Bank GO scale profitably while maintaining competitive margins in a crowded digital banking market?
