AMP announces $350m buy-back amid lack-lustre half year results

AMP has sent a strong message to the market despite indifferent first half result, announcing a $350 million on-market share buy-back commencing immediately with a further $750 million of capital returns in the 2023 financial year.

The announcement of the buy-back came against the background of the company reporting indifferent results across almost all of its business units with AMP Bank down 45.2%, Australian Wealth Management down 20%, New Zealand Wealth Management down 10.5% but with AMP Capital continuing operations up 62.5%.

This all fed into an underlying net profit after tax of $117 million which the company said included the impact of the previously announced North and Master Trust strategic repricing in 2021 and the release of the AMP Bank credit loss provision.

On the financial advice front, the company said that its advice reshape and transition to a contemporary service model was delivering strong outcomes with Advice net profit after tax losses on track to halve by Financial Year 2022.

It said the first half underlying loss of $20 million had improved from the lost of $85 million in the first half of last financial year and had benefited from the sale of the employed advice business.

“Advice revenue was $7 million higher at $30 million, with revenue growth in portfolio of equity investment in 1H 22 and impairments in 1H 21 not repeated, offset by the impact of the employed advice sale in late 2021,” it said.

AMP chief executive, Alexis George said the company had built strong momentum in the transformation of AMP.

She said that while its profit had declined due to a more challenging environment, it was also a reflection of the deliberate actions it took to replace its offers in Master Trust and Platforms