AMP’s financial services division’s profits have surged in the six months to the end of June while the rest of the company’s profits are down on last year’s result.
AMP Financial Services (AMPFS) posted a 16.5 per cent increase in core recurring operating margins for the first half of this year. The company attributes the increase to a mix of strong business growth, improved retention and ongoing cost reductions. Overall the company recorded a profit of $403 million for the first half of this year, lower than last year’s result of $525 million.
Cashflow into AMPFS from retail products jumped a healthy 64 per cent, which was driven by both adviser and direct channels.
The company says the AMPFS division has continued to bring its costs down, with a six per cent reduction in its cost to income ratio to 43 per cent.
