Leaner AMP resets its cost base
AMP Limited has reset its cost base to reflect the changed shape of the business.
The company has undertaken the reset ahead of the result of its full-year results early next month saying it had reviewed how costs are allocated across its business units and corporate centre “following a period of transformation and an extensive cost reduction program”.
“Through the Business Simplification program, AMP has reset its costs base to reflect the go forward business,” it said. “These cost allocation changes, which largely represent technology and property related costs, more accurately reflect the costs of operating the business units in their current configuration within AMP Group.”
The announcement said the updated allocation provided the market with “the most appropriate view from which to assess performance of the business units and future prospects”.
However, the announcement to the Australian Securities Exchange (ASX) said the changes would not impact the firm’s total controllable cost base, nor its total net profit after tax.
It said the cost allocation changes resulted in a restatement of the individual business unit reported underlying NPAT figures for FY24 and the first half, excluding New Zealand as it operates on a standalone basis.
The company said it expects its FY 25 costs to be in line with guidance while its FY 26 controllable costs are expected to be in the range of $630 – $640 million reflecting inflation of 3-4% as well as the costs attributable to the scale of AMP Bank GO
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