AMP Faces New Class Action as Statutory Profit Dips 4.9% in H1

Financial Performance Overview

AMP Limited’s half year results for the period ended 30 June 2025 reveal a nuanced financial picture. While statutory net profit after tax (NPAT) declined by 4.9% to $98 million, the company’s underlying NPAT rose by 9.2% to $131 million, reflecting operational improvements across key business units. Revenue from ordinary activities fell 3.5% to $1.376 billion, influenced by market conditions and business mix changes.

The company declared an interim dividend of 2.0 cents per share, franked at 20%, signaling confidence in its capital position despite ongoing challenges. The dividend payout aligns with AMP’s target of 2.0 cents per share per half, subject to economic conditions and capital requirements.

Segment Performance and Operational Highlights

AMP’s Platforms business led growth with a 7.4% increase in underlying NPAT to $58 million, driven by higher net cash inflows and disciplined cost management. The AMP Bank segment also improved, posting a 2.9% rise in underlying NPAT to $36 million, supported by margin expansion and the rollout of AMP Bank GO, a digital banking initiative targeting small business and retail customers.

Superannuation & Investments maintained steady earnings at $34 million, with improved retention and resilient inflows offsetting lower investment income. New Zealand Wealth Management saw an 11.8% increase in underlying NPAT to $19 million, benefiting from favourable market conditions and stable costs.

Overall, AMP’s cost-to-income ratio improved to 59.4% from 62.3% in the prior year, reflecting ongoing cost discipline and business simplification efforts. Total assets under management (AUM) across Platforms, Superannuation & Investments, and New Zealand Wealth Management grew by 10.1% to $153.9 billion.

Capital Position and Dividend Policy

AMP strengthened its capital base with a Common Equity Tier 1 (CET1) capital surplus of $211 million as at 30 June 2025, up from $139 million at the end of 2024. This improvement was driven by statutory profits and prudent capital management, partially offset by dividend payments.

The board’s decision to maintain the interim dividend at 2.0 cents per share, 20% franked, reflects a balanced approach to rewarding shareholders while preserving capital flexibility amid uncertain economic conditions and ongoing legal matters.

Emerging Legal Risks

AMP faces significant legal challenges that could impact future financial results. In July 2025, a new life insurance class action was filed against AMP’s superannuation subsidiaries, alleging excessive premium payments between June 2019 and April 2024. The company is defending the proceedings, but the potential financial impact remains uncertain.

Additionally, AMP is involved in a dispute with Dexus Funds Management Limited concerning pre-emptive rights related to the sale of the former AMP Capital business. This litigation, filed in the Supreme Court of New South Wales, also carries uncertain outcomes and costs.

Strategic Outlook

AMP continues to focus on its strategic priorities, driving growth in wealth management flows, scaling the AMP Bank GO platform, supporting partnerships including international ventures, maintaining strict cost control, and leveraging artificial intelligence to enhance operational efficiency and client service.

These initiatives aim to position AMP as a leading retirement specialist, delivering financial confidence to Australians in retirement. However, the company’s ability to navigate legal risks and evolving market conditions will be critical to sustaining momentum.