Advice NPAT significantly improves at AMP

amp advice wealth management Alexis George

16 February 2023
| By Laura Dew |
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AMP has announced the progress of its Advice transformation as advice net profit after tax has more than halved from a loss of $146 million a year ago.

Overall underlying net profit after tax (NPAT) for AMP was $184 million, down from $280 million, which reflected investment market volatility on assets under management, strategic repricing in wealth management business and net interest compression in AMP Bank.

In the advice division, the business said NPAT had more than halved from a loss of $146 million to a smaller loss of $68 million. Its transformation “continues to progress towards a sustainable, standalone business”.

Advice revenues were $56 million, down from $58 million, impacted by the sale of the employed business and partially offset by higher licensee fees and growth in equity investment portfolio.

Assets under management (AUM) in the wealth management division were $124 billion, down from $142 million a year ago.

The firm said this was impacted by a decline in investment markets and net cash outflows of $5.3 billion. NPAT for the wealth management division, which included platforms, master trust and advice, was $50 billion, down from $89 million in the first half of FY21.

This reflected strategic repricing in the North and Master Trust to attract and retain customers.

On the North platform, there was a 31% increase in inflows from independent financial advisers (IFA) which saw AUM remain stable at $61.3 billion while overall platform assets under management were $65.5 billion, down from $71.1 billion a year ago.

The decrease was the result of volatile investment markets and was partly offset by cash inflows of $936 million.

“The Platforms business is positioned for growth, underpinned by continued enhancements to service, functionality and investment choice, as well as the recent launch of the new retirement product and North’s expanding IFA relationships.”

Alexis George, chief executive, said: "We are seeing positive momentum around the transformation of our Advice business, where we have more than halved the losses, and our key growth businesses – AMP Bank and Platforms – are starting to benefit from the investments we are making in those businesses. In our flagship North platform, we have continued to increase the percentage of flows from the independent financial adviser market.

"Strategically and operationally, we have a clear path forward for AMP as a leader in wealth management and banking, building on our purpose – helping people create their tomorrow."

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