AMP Financial Planning makes significant contribution to group profit
Andrew Mohl
AMP Limited appears to have moved beyond some of the troubles of last year, to report an 11 per cent increase in underlying profit for the year ended December 31.
The profit announcement came at the same time as AMP Financial Planning announced that it has significantly increased the number of clients affected by its enforceable undertaking from 7,000 to 35,000.
AMP chief executive officer Andrew Mohl said that AMP preferred to use the underlying profit measure, but the company’s data revealed that profit after income tax and before other items had increased by 15.6 per cent.
Despite its problems with respect to the enforceable undertaking, AMP Financial Services made a significant contribution to the company’s overall result with operating earnings growing 18 per cent to $607 million on the back of a 22 per cent increase in cash inflows to $13.7 billion.
The company said net cash flows rose 53 per cent to $3.5 billion, buoyed by an exceptional second quarter with AMPFP cash flows rising by 27 per cent to $1.4 billion, Hillross by 31 per cent to $625 million and the Corporate Superannuation direct sales force by 35 per cent to $2.1 billion.
The announcement said that total planner numbers across the AMPFP, Hillross and New Zealand had fallen from 1,906 to 1,876.
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