AMP (AMP) H2 2024 earnings summary

Executive summary

• Underlying NPAT rose 15.1% year-over-year to $236 million, with underlying EPS up 25% to 9.0cps, supported by improved business performance, cost discipline, and a share buyback.

• AUM increased 10.9% to $148.4 billion, driven by positive market movements and improved flows across wealth businesses.

• $1.1 billion in capital returned since August 2022, reducing shares on issue by 22%.

• Strategic priorities delivered: completed Advice transaction, launched new digital bank, and advanced AI initiatives.

• Customer satisfaction and staff engagement improved, and carbon neutrality maintained for the 12th consecutive year.

Financial highlights

• Total revenue declined 1.1% year-over-year to $1,252 million, with Platforms revenue growth offset by lower AMP Bank net interest income.

• EBIT increased 20.2% to $310 million; statutory NPAT fell 43.4% to $150 million due to prior year one-off gains and business simplification costs.

• Controllable costs fell 6.1% to $648 million, beating the $660 million target; variable costs reduced 7.5% to $294 million.

• Cost-to-income ratio improved by 2.7 percentage points to 63.8%.

• Final dividend of 1.0cps (20% franked), full-year dividend 3.0cps; guidance for 2.0cps per half in 2025.

Outlook and guidance

• FY25 controllable cost target set at $600 million, a further 7.4% reduction, with business simplification program on track.

• Platform margin forecast at 43bps, Super & Investments margin at 63bps, and AMP Bank NIM expected to remain flat.

• Dividend guidance of 2.0cps per half for FY25, with a continued focus on cost discipline, digital bank rollout, and leveraging wealth business growth.