Increasing inflows through financial planners will play a vital role as AMP attempts to double in size over the next five years, chief executive Andrew Mohl said today.
The financial services group today reported a 22 per cent rise in net profits to $393 million for the half-year to the end of June, prompting Mohl to predict growth of at least 15 per cent in the operating margins of both AMP Financial Services and AMP Capital Investors for the full year.
Mohl said AMP would aim to double in value by 2010, an ambition that would require it to sustain 15 per cent growth per annum.
The half-year result was propped up by a $600 million increase in cash inflows, the result of a 12 per cent increase in funds flowing in through AMP advisers and a trebling of the group’s corporate superannuation business in the lead up to the introduction of super choice in July.
A standout, Mohl said, was the group’s ‘contemporary business’, which includes AMP’s product manufacturing arm for financial planners. The division grew operating margins by 38 per cent to $144 million.
The introduction of super choice and increasing demand for financial advice would open up further growth opportunities for AMP, Mohl said.
“AMP continues to transform its operations and we are encouraged by the results in the first half year. The business has achieved growth in both the retail and institutional sectors and our position in key market segments continues to improve,” Mohl said in a statement.
