AMP Limited reported a robust FY25 with underlying NPAT up 20.8%, driven by strong cashflow growth, cost reductions, and new product launches including AMP Bank GO and AMP Lifetime Pension. The company sets a steady course for FY26 with continued focus on retirement solutions and AI-driven innovation.
- Underlying NPAT rises 20.8% to $285 million
- Platforms cashflows surge 85.2% to $5.1 billion
- Launched AMP Bank GO deposits reach $310 million
- Introduced AMP Lifetime Pension and North Interactive Wealth Portal
- Controllable costs reduced by 6.9%, with FY26 guidance of moderate cost increase
Strong Financial Performance Amid Strategic Transformation
AMP Limited has delivered a compelling FY25 financial performance, underscoring the success of its five-year transformation strategy focused on wealth and retirement leadership in Australia and New Zealand. Underlying net profit after tax (NPAT) rose 20.8% to $285 million, while earnings per share jumped 25.6%, reflecting both improved earnings and the final stages of a share buyback program.
The company’s disciplined cost management was evident as controllable costs fell 6.9% despite inflationary pressures and the operational costs of the newly launched AMP Bank GO. This cost efficiency contributed to a significant improvement in the cost-to-income ratio, which dropped by 6.1 percentage points to 61.5%.
Driving Growth Through Innovation and Customer Expansion
AMP’s wealth platforms experienced a remarkable 85.2% increase in cashflows, reaching $5.1 billion, supported by strong adviser engagement and the growth of Managed Portfolios, now valued at $25.2 billion. The company successfully expanded its adviser network, adding 122 new advisers with funds under administration exceeding $1 million, and signed 65 new distribution agreements.
Innovation remains a cornerstone of AMP’s strategy. The launch of the AMP Bank GO platform attracted $310 million in deposits, with 40% held in transaction accounts, and the rollout of the AMP Lifetime Pension is set for 1H 2026, aiming to provide members with a lifelong income stream. Additionally, the upcoming North Interactive Wealth Portal promises to enhance adviser efficiency and client engagement.
Solid Capital Position and Legacy Legal Matters Resolved
AMP maintained a strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 10.5%, comfortably above regulatory requirements. The company also resolved several legacy legal matters, including settling two class actions and receiving $68 million from insurers related to historical remediation programs, which helped clear the path for future growth.
In its banking segment, AMP Bank reported a 6.6% increase in underlying NPAT to $65 million, driven by net interest income growth and improved margins. The combined AMP Bank and AMP Bank GO operations continue to focus on targeted lending opportunities and funding optimisation, with a strategic shift towards higher capital-efficient funding sources such as securitisation.
Looking Ahead – FY26 Guidance and Strategic Priorities
For FY26, AMP expects controllable costs to rise moderately to between $630 million and $640 million, reflecting inflation and the scaling of AMP Bank GO. The company anticipates stable AUM-based revenue margins in its Platforms and Superannuation & Investments businesses, while targeting $1 billion in total deposits for AMP Bank GO and a net interest margin range of 1.25% to 1.30% for AMP Bank.
AMP’s strategic priorities remain firmly anchored in expanding retirement solutions, embracing new business models, driving customer growth, and leveraging artificial intelligence to enhance outcomes for customers and shareholders. The company is also positioned to actively participate in industry consolidation and pursue inorganic growth opportunities to scale its wealth capabilities.
Bottom Line?
AMP’s FY25 results mark a confident step forward in retirement innovation, but investors will watch closely how the company balances growth ambitions with cost discipline in FY26.
Questions in the middle?
- How will AMP’s new retirement products impact market share in a competitive sector?
- What are the risks and opportunities in AMP’s growing AI initiatives for customer engagement?
- When might AMP execute further capital returns, including potential share buybacks?