AMP delivers 33% profit jump

AMP has reported a 33% jump in underlying profit to $174 million in the first half, with statutory net profit up 57% to $154 million.

Assets under management increased to $167.6 billion, which AMP said reflected momentum in its wealth and retirement businesses.

Speaking to Financial Standard, AMP chief executive Blair Vernon said AMP has "marked our territory" in regard to lifetime income products, and plans to continue expanding innovation in the area.

"That's been a real flag bearer in terms of innovation. I think we're seeing lots of other folks joining that," he said.

"We see more in retirement innovation in terms of experience across that 'whole of retirement' journey.

"We're getting feedback from advisers [on challenges] their clients are facing in terms of retirement, not just in product but in experience and interface with other parts of the retirement ecosystem. So, we think there's an opportunity for us to deliver capability to advisers and through North in that space."

Vernon also flagged more product initiatives are expected to be announced down the line.

"We can't go into details at this point in time, but we are seeing the pipeline of innovation and ideas and that gives me great confidence there is more opportunity for us to continue to deliver solutions that make retirement a better and greater outcome," Vernon said.

Meantime, platforms net cashflows increased 33% to $3.1 billion for the half, while superannuation and investments delivered its first positive half-year net cashflow result since 2017.

"AMP's first half results reflect the momentum we are building as we grow our wealth and retirement businesses, deepen customer engagement and maintain a disciplined approach to capital management," Vernon said.

"Demand continues to grow for our market-leading retirement solutions from advisers and direct-members. In platforms, more new advisers are coming to North, attracted to its features and functionality including the new AI-powered North Interactive Wealth Portal.

"Cashflows across all our wealth businesses reached new milestones in this half - up 33% in North, turning positive in super and investments for the first time since 2017, and up almost 20% in New Zealand."

AMP said going forward there is a clear focus on growing the wealth businesses and releasing capital from the banking business.

It also announced an additional $150 million buyback and interim dividend of three cents per share.

"Releasing capital from AMP Bank and non-strategic assets remains a key priority in our capital management strategy," Vernon said.

In addition, AMP said it has already returned $201 million to shareholders in 1H26, execute through a $150 million buyback and $51 million in dividends.

Meanwhile, contribution from AMP's China partnerships more than doubled to $56 million.

"Our China partnerships are performing strongly, supported by growth in retirement savings and pensions in China and the strength of our long-standing partnerships," Vernon said.