AMP plunges after drop in full-year profit, dividend cut
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More news: Shares in AMP slumped more than 13% to $1.52 in early trading after the wealth management giant reported a 43% slide in full-year profit and slashed its final dividend.
The company attributed the profit decline to loss on the sale of its Advice business and higher spending on its business simplification program. AMP Bank, which accounts for a quarter of the company, also posted a 22.6% decline in profit amid subdued volume growth and falling margins.
Advice business sale weighs on AMP full-year profit
The news: Wealth manager AMP has posted a 43% slide in full-year statutory profit, reflecting a loss on the sale of its Advice business, but strong market conditions helped lift the underlying profit.
The numbers: Statutory net profit for the year to December dropped to $150 million from $265 million in FY23, largely on account of a $36 million loss on the sale of its Advice business and $43 million in spending on its business simplification program.
On an underlying basis, profit was up 15% to $236 million, with revenue up 5% to $2.87 billion. The group will pay an interim dividend of 1 cent a share, down from 2 cents a year ago.
AMP’s platforms business recorded a 19% improvement in profit to $107 million, while super & investments profits were up 26% to $67 million. AMP Bank recorded a drop to $72 million, while New Zealand wealth management was up 9% to $37 million.
The context: “We were disciplined in driving efficiencies through the businesses and remain committed to delivering our cost commitments for FY 25,” CEO Alexis George said.
The group said it is targeting a dividend payout of 2 cents a share for each half in 2025, subject to economic conditions and other uses for capital.
The source: ASX
