AMP reports underlying profits of $772 million
AMP has reported a $772 million underlying profit for 2009, down 5 per cent on 2008.
Net profit attributable to shareholders was up 27 per cent to $739 million compared to the full year 2008, reflecting improved investment returns, the group stated in a release to the Australian Securities Exchange (ASX).
AMP stated that its strong balance sheet and low cost ratios provided the flexibility to increase investment in key growth initiatives.
“We’re on track with major change programs as we reshape the business for ongoing success,” AMP chief executive Craig Dunn said. “We are committed to staying ahead of evolving consumer preferences and changes in the regulatory landscape.”
Other key performance measures highlighted in the release include underlying return on equity at 31.6 per cent compared to 38.9 per cent in full year 2008; AMP Financial Services net cash flows up 17 per cent to A$1.7 billion; AMP Capital external net outflows at A$1.1 billion (compared to net outflows of A$804 million in full year 2008); value of risk insurance new business in Australia up 11 per cent to A$100 million; and 67 per cent of assets under management (AUM) meeting or exceeding the benchmark over the 12 months to December 31, 2009, while 72 per cent of AUM met or exceeded benchmarks over five years to December 31, 2009.
The final dividend was declared at 16 cents per share, 50 per cent franked with the unfranked amount being declared conduit foreign income. The final dividend represented a payout ratio of 80 per cent of underlying profit for the second half of 2009.
The statement included AMP’s position with regards to the proposed acquisition of AXA’s Australian and New Zealand businesses.
Referring to industry consolidation in 2009, Dunn said AMP expected to see the shape of the competitive landscape continue to shift.
“AXA remains strategically attractive to us. We are continuing to consider our position and will do what is in the best interests of shareholders,” he said.
AMP’s investor presentation noted the “critical scrutiny” by the Australian Competition and Consumer Commission (ACCC) of further consolidation in the wealth management industry. However, it appears AMP sees hope in the fact that the ACCC has taken note of the different outcomes of the AMP and NAB proposals.
AMP also announced to the ASX that it is no longer a substantial holder in AXA Asia Pacific Holdings as its exclusivity agreement terminated on February 6.
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