Amp Stock Earnings Reports

Key points for investors:

- Strong underlying FY25 operating performance: underlying NPAT +21% to AUD 285m; EPS +25%; group ROE improved to 8%. Statutory NPAT was AUD 133m after AUD 95m litigation/remediation and AUD 50m business simplification charges.

- Revenue and scale: total AUM up 9% to AUD 161.7bn. Platform net cash flows surged ~85% to AUD 5.1bn. Lifetime solutions (MyNorth Lifetime) scaling (AUM increased materially during the year).

- Cost and capital discipline: controllable costs fell ~7%; cost-to-income improved. Business simplification largely complete, with a further small investment to finish in FY26. CET1 surplus improved to ~AUD 287m (pro forma ~AUD 236m after the announced dividend).

- Capital returns and dividends: final dividend A$0.02 per share (20% franked); FY25 total dividends A$0.04. Management signals consistency for FY26–27 and says on-market buyback is the preferred method to return additional capital (given limited franking credits).

- AMP Bank and AMP Bank GO: AMP Bank GO launched in FY25 with ~AUD 310m deposits; management targets AUD 1bn GO deposits in FY26 but expects most NIM benefit to be felt in FY27. Bank strategy remains focused on return on capital rather than growth by volume; management is actively pursuing balance-sheet and RWA actions to release capital.

- Business unit guidance for FY26 (subject to markets): Platforms margin 40–41 bps; Super & Investments margin 60–61 bps; AMP Bank NIM 125–130 bps; partnerships expected ~10% p.a. medium-term; controllable costs A$630–640m.

- Partnerships and China exposure: China partnerships performed strongly (CLPC and CLAAM contributing materially); management expects continued growth linked to Pillar 2/3 expansion in China.

- Legacy/legal: Most legacy Royal Commission-related issues have been resolved via settlements (payments provided for in FY25); one new class action was filed in FY25 (no material near-term impact expected).

- Strategy and priorities: focus on growth (organic and D2C), retirement/lifetime income innovation, adviser productivity tools (including AI), deposit growth via GO, and continued capital efficiency. Management emphasised restored reputation and the claim that AMP is uniquely positioned at the intersection of wealth and banking.

- Key risks and investor considerations: margin compression in platforms driven by product mix (managed portfolios), competitive pressure in platform pricing, bank returns still below the group's cost of capital and dependent on capital-release measures and GO scale, and residual legal/class-action risk (the newly filed suit).