Freed from advice, AMP signals improved dividends ahead

AMP Limited reminded investors that its capital management program has resulted in $1.1 billion being returned to shareholders since August 2022 as it announced a full-year result centred on a 15.1% increase in underlying net profit after tax but a decline in statutory NPAT.

The decline in statutory NPAT reflected the loss on the sale of the advice business.

The result, the first since AMP’s substantial exit from its financial planning licenses, also saw the Board declare a final dividend of one cent per share, 20% franked with two cents per share targeted for the first half of 2025.

AMP chief executive, Alexis George described it as another year of strategic delivery for the company.

“We sold and transitioned the Advice business, hit cost targets and completed our $1.1 billion capital return program. Our wealth businesses are competing strongly in their chosen markets, driving positive performance, and we’re launching new offers including digital advice,” she said.

“Having successfully completed the Advice transaction in December 2024, AMP is positioned to drive growth and build on opportunities in our wealth businesses to become a pre-eminent retirement specialist, and as a leading digital bank.”

AMP’s outline of its divisional performance emphasised the importance of its North Platform with underlying net profit after tax increasing 18.9% to $107 million, which the company said was driven by strong market conditions, positive net cashflow momentum and cost discipline.

“During FY 24, North signed 99 new distribution agreements with AFSLs, and activated ~140 net new advisers with FUA >$1 million (net figure excludes advisers exiting the industry). AMP’s innovative retirement solutions continue to drive new adviser interest in North,” the results commentary said.

It said underlying profit within its superannuation and investments business increased by 26.4% to $67 million with net cash outflows (excluding pension payments) of $1 billion improving from net cash outflows of $6.4 billion in the 2023 financial year resulting from a mandate loss.

It said AMP bank recorded underlying net profit after tax of $72 million, down from $93 million in FY2023.