Advice proves profitable for AMP
AMP recorded a $972 million net profit for the 2015 financial year, with its wealth management arm accounting for more than 42 per cent of the total.
In a statement posted on the Australian Securities Exchange, AMP said its seven per cent increase in underlying profit ($1,120 million) was "largely the result of good operatings growth in Australian wealth management (10 per cent), AMP Capital (20 per cent), AMP Bank (14 per cent) and New Zealand financial services (nine per cent)".
The company reported net cashflows of $2.2 billion in its Australian wealth management arm, down three per cent on 2014, which was attributed to the closure of Genesys Wealth Advisers in November 2014.
"Excluding those Genesys advisers that left AMP during FY15, proforma net cashflows were $2.9 billion, an increase of 27 per cent from FY14," the company said.
AMP chief executive, Craig Meller, announced the Board had approved a four per cent increase to the final dividend to 14 cents per share, compared with 13.5 cents per share for the 2014 final dividend.
"This is a very good performance against a backdrop of challenging markets in the second half," he said.
"Momentum continued across Australian wealth management and AMP Capital, which delivered a particularly strong result as our international investment management profile expands, both in China and more broadly.
"Our business efficiency program is on track and we continue to focus on the improvement of our wealth protection business, with the new claims process providing a better outcome for customers and shareholders.
"AMP has a clear focus to be a more customer centric, efficient and international organisation. The execution of this strategy is unlocking the long-term potential of our business, which we are confident will continue to deliver value for our shareholders."
AUTHOR
Nicholas O'Donoghue
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