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- AMP (AMP) reports a statutory net profit after tax (NPAT) of $261 million, compared to $469 million reported in 1H22
- However, underlying NPAT actually increased – AMP’s preferred measure of its own profit performance
- The company will pay a 20 per cent franked interim dividend of 2.5 cents
- The company has suspended stage 3 of its capital return strategy due to ongoing regulatory uncertainty and a court case regarding financial advisers broadly
- AMP shares are up 3.41 per cent, trading at $1.14 at 12:37 pm AEST
AMP (AMP) has posted its half-yearly CY results, reporting a statutory net profit after tax (NPAT) of $261 million, compared to $469 million reported in 1H22.
To be fair, 1H CY22 saw AMP sell off large assets for which it received high profits.
Underlying NPAT, AMP’s preferred measure, came in lower than statutory NPAT at $112 million – but AMP Bank underlying NPAT increased by 23.9 per cent compared to 1H CY22.
The residential mortgage book also grew eight per cent over the same period.
Regardless, AMP will pay an interim dividend of 2.5 cents per share, and it has also announced a share buyback valued at nearly $400 million.
While AMP shares are in the red on the back of the results, AMP’s capital management did show signs of a company executing financial discipline.
AMP has returned $610 million of capital to shareholders since August 2022, the company reported. The interim dividend is estimated to return some $140 million, and AMP has paid down $302 million in July 2023 alone.
Underlying earnings per share hit 3.8 cents per share – an increase of 11.8 per cent from 1H CY22.
Management did note the impact of recent lawsuits and ongoing pushes to further reform the Australian financial advice sector, which has led to AMP suspending one stage of its capital return strategy.
“We have booked a $50 million provision in response to the judgment in the Financial Adviser Class Action … the process for the Court making orders from the judgment is ongoing and until finalised we won’t make a decision on any appeal,” AMP CEO Alexis George said.
“Given the current uncertainty around the Court’s judgment and other litigation matters, we are taking a prudent approach with our capital and liquidity and will pause tranche three of the capital return. We will review the decision to pause tranche three by no later than the end of the year.”
AMP Bank’s cost-to-income ratio improved to 43.9 per cent, down from 49.9 per cent in 1HCY22, while net interest income increased by 13.6 per cent to $200 million, even though margins have overall fallen – something not immediately clear at face value when reading the result.
The interim dividend will only be 20 per cent franked.
AMP shares were up 3.41 per cent, trading at $1.14 at 12:37 pm AEST.
