AMP shares lift on improved profit, divestments
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More news: Shares in AMP jumped more than 9% to $1.24 in early trading after the wealth management giant posted a better-than-expected underlying profit of $118 million and outlined further divestments.
The sales included a majority stake in advice licenses and Jigsaw for $10.2 million, as well as minority stakes in 16 advice practices for $82.2 million.
AMP half-year profit drops, to sells advice licences
The news: Wealth manager AMP has reported a slide in its half-year statutory profit, although cost cuts helped lift underlying profit.
The numbers: Statutory net profit for the six months to June came in at $103 million, down from $261 million a year ago although that result was boosted by gains on the sale of AMP Capital and SuperConcepts.
Underlying profit for the half year was $118 million, up 5.4% from a year ago. The group will pay an interim dividend of 2 cents a share, down 20% from the previous year.
The context: AMP’s platforms business recorded improved profit of $54 million from $44 million, while its investments arm grew to $34 million from $28 million. However, its banking arm recorded a profit drop to $35 million from $57 million.
Its advice business narrowed the half-year loss to $15 million from a previous loss of $25 million a year ago.
Chief executive Alexis George said the group has made good progress on key strategic commitments, and continued to deliver on simplification and cost reduction, while also driving growth in its wealth businesses and returning capital to shareholders.
AMP separately announced it will book a loss of $30 million from the sale of its advice business in the second half of the year.
Financial services company Entireti will buy a majority stake in AMP’s advice licensees and Jigsaw for $10.2 million, with AMP retaining a 30% stake, while AZ NGA will buy AMP’s minority stakes in 16 advice practices for $82.2 million.
The sources: ASX announcement, ASX announcement
