AMP Limited has turned in a strong half year, reporting a 33 per cent increase in net profit to $507 million when compared to the same period last year.
The company announced to the Australian Securities Exchange (ASX) today that underlying profit for the six months to 30 June was up 12 per cent to $570 million driven by strong growth in all contemporary businesses.
The Board declared a 12 per cent increase to the interim dividend to 14 cents per share.
Wealth management proved to be a key driver for the company’s performance, with chief executive, Craig Meller, pointing to a 13 per cent increase in wealth management operating earnings, reflecting stronger net cashflows and investment returns alongside a continued focus on managing costs.
He said that in wealth protection, operating earnings were $99 million, up nine per cent on half, reflecting the impact of management actions but noted that the environment continued to be volatile, albeit that claims and lapse outcomes remained “in line with best estimate assumptions”.
“The wealth protection business continues to stabilise and is delivering improved results, however we have more to do,” Meller said.
Referring directly to the advice sector, the AMP announcement pointed to a package of measures aimed at lifting the quality of advice underway within the company alongside a new approach to advice being piloted with encouraging results from consumer testing in five locations.
“AMP continues to invest in service, platforms and digital capability to improve adviser quality and productivity,” the announcement said. “Australian adviser numbers are stable at 3,762 in a period of considerable change.”
Where the North Platform was concerned, the ASX announcement said assets under management had grown 16 per cent to $18.6 billion with customer numbers increasing 14 per cent to over 87,000.
However, it said net cashflows had fallen four per cent to $2.3 billion in the first half largely as a result of more pension customers drawing down an income stream.
