AMP shares rally as it improves super outflows
Make us a preferred source
Make us a preferred source on Google
More news: AMP shares rallied after it posted improvements in its superannuation outflows and reported a steady bank loan book.
AMP shares were up 1.8% to $1.13 in afternoon trade, outstripping the wider financial sector rise of 0.02%. However, over the last 12 months its shares have lost 63.02%.
AMP super outflows improve while bank remains steady
The news: AMP has improved outflows in its superannuation business while AMP Bank has continued to make steady progress during the first quarter.
The numbers: AMP’s superannuation and investments posted new cash outflows of $108 million, an improvement from outflows of $374 million during the first quarter of 2024. The wealth manager recently launched its digital advice offer which it said drove improved retention and inflows.
AMP Bank’s loan book remained steady at $23.3 billion and the firm said this reflected its strategy to prioritise margins and profitable growth in the current environment, Net interest margin also remained steady and it said credit quality was strong.
Platforms AUM dropped to $78.8 billion from $79.8 billion during the prior quarter which AMP said was due to market instability. Meanwhile, platforms net cashflows rose 268% to $740 million from the prior corresponding period.
The context: In February, the wealth manager posted a 43% slide in statutory profit for the full year after a loss on the sale of its advice business and spending on its simplification program.
AMP also launched its digital bank in February to diversify its funding mix via deposits from small business and personal customers.
What they said: “We continue to consciously manage the loan book in our mortgage business in order to prioritise margin, and NIM for the quarter remains steady,” AMP chief executive Alexis George said.
The source: ASX
