New AMP boss outlines vision amid drooping share price

New AMP chief executive Blair Vernon has sought to allay shareholders' fears about the wealth firm's deteriorating share price, saying external factors do not reflect strong financial performance and fundamentals.

At his first annual general meeting (AGM) at the helm, Vernon told shareholders the unprecedented volatility in share price movements of many ASX companies has been exacerbated by a range of factors not entirely related to company performance.

AMP's share price, since the release of its full-year results in mid-February, drastically dropped by 24% from about $1.76 to the current trading price of $1.33.

Vernon expressed a disconnect, given that in the full year to December 2025 AMP reported underlying NPAT of $285 million, an increase of 21% year on year.

Underlying NPAT for the platforms unit went up 9.3%, while the superannuation and investments unit reported a 15% rise to $62 million.

"This has been disappointing for all stakeholders, and, in the board's view, does not reflect the strong growth in financial performance that has been achieved over the last few years. Of course, share price movements reflect a wide range of factors, including sentiment, expectations of future performance and broader macro and geo-political conditions," Vernon said.

On the external factors, Vernon blamed the rise and influence of high frequency trading, passive investing and the increased emphasis on investment managers' quarterly performance that are "currently having an outsized impact on market prices - beyond company fundamentals."

"Nevertheless, at AMP we remain focused on those things we can control: effectively executing our strategy, driving growth in our wealth businesses, carefully managing capital and delivering sustainable long-term value," he said.

The firm is now undertaking a $150 million on-market share buyback to improve earnings per share.

Vernon said while the top priority is to grow earnings organically, the board is cognisant that with AMP's low franking credit balance, there is limited benefit to domestic shareholders in seeking to increase the dividend materially at the present time.

"Instead, the board considers on-market share buybacks to be the most efficient method of capital management - and increasing shareholder value," he said.

Vernon also outlined his broader vision for AMP at the AGM: to grow the wealth businesses, embrace artificial intelligence (AI), and improve capital allocation and organisational efficiency.

To drive organic growth, Vernon said this will be done via a "relentless focus on customer acquisition and retention, and importantly, by growing and deepening our adviser partnerships."

He plans to ramp up the use of AI across the business, such as contact centres and corporate functions.

"At the same time, we will continue to identify how we mitigate and minimise AI risks. That includes responding to how AI may disrupt the wealth sector and the tight regulatory frameworks that help to mitigate that risk for AMP," he said.

Vernon took over the top job from Alexis George, who left the wealth firm on March 30.