AMP profit sustained by wealth management
Wealth management has helped drive AMP Limited to a solid a 17.4 per cent increase in net profit attributable to shareholders for the six months to the end of June.
The company reported to the Australian Securities Exchange that net profit had been $425 million for the period, with AMP chief executive Craig Dunn saying it had been bolstered by robust core business performance.
The company’s results announcement revealed that its Contemporary Wealth Management division, which includes financial planning, superannuation and business banking, had increased operating earnings by 16 per cent to $150 million as a result of higher invest-related revenue linked to higher assets under management.
It said that AMP Financial Services operating earnings for the period had increased by 5 per cent to $323 million with significant achievements including reshaping the business through the removal of in-built commissions from all new superannuation, pension and investment products and the launch of AMP Flexible Super.
The company said AMP Capital Investors had contributed operating earnings of $44 million, up slightly on the previous period, with total assets under management remaining flat at $95 billion reflecting strong external net cash flows that were offset by negative investment returns from falling investment markets.
Dunn said that AMP remained cautious despite the reasonable positive economic outlook for Australia and the Asian region.
However, he said AMP remained one of the most efficient providers of wealth management in Australia with a business model that allowed significant flexibility to respond to changing consumer demands and the changing regulatory landscape.
AUTHOR
Mike Taylor
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