AMP advisers approach 1k as firm targets breakeven in advice
Progressing digital advice and seeking breakeven in the advice division are part of AMP’s goals for the upcoming financial year as it approaches 1,000 financial advisers in its licensee.
In a speech at the firm’s annual general meeting on 12 April, CEO Alexis George reflected on AMP’s goals for the year ahead.
It is seeking to break even in the advice division, having reported an underlying net profit after tax (NPAT) loss of $47 million in the full year 2023. Advice revenue fell slightly from $56 million a year ago to $50 million, but revenue per practice grew from $1.59 million to $1.75 million.
It is approaching 1,000 advisers with 978 currently at the firm, George said.
The CEO stated: “Our advice business continues to reduce costs and improve efficiency, as we make good progress to establish advice as a sustainable, standalone and professional business. Adviser sentiment has further improved which is certainly encouraging.
“We remain focused on achieving breakeven in advice and we are continuing to look at alternate structures with our adviser network.
“The need for advice is stronger than ever. We are pleased to see supportive government policy in this space and we will continue to advocate on behalf of our members and the broader community and seek to work with the government, industry and regulators to better assist our growing number of retirees.”
The firm announced last November that it was looking into offering digital advice, with group executive for advice Matt Lawler stating AMP has been in talks with a number of providers including Midwinter, GBST and Otivo.
“As well as focusing on our existing businesses, we also need to look at the future and create new revenue streams and innovation. This includes progressing digital advice opportunities as well as our digital small business bank to launch in the first quarter of 2025.”
Also speaking at the AGM was AMP chair Debra Hazelton, who has since stepped down after three years as chair and will be replaced by Mike Hirst, who noted the change in the company’s public profile and reputation with consumers.
This includes the class action with advisers regarding Buyer of Last Resort proceedings which is due to have a $100 million settlement approved by the Federal Court later this month.
Hazleton said: “There is sound evidence that we have come a long way in rebuilding trust and our reputation with the broader public. While we are very aware there is still much more to do, the positive momentum we have built is critical as we focus on the future for growth.
“Delivering on a cultural change agenda is definitely not easy, but I believe we have established a culture that is anchored to our purpose while also embracing elements of innovative thinking and management agility. Importantly, we have also significantly enhanced AMP’s risk culture in recent years, giving us a strong foundation from which to make decisions for the future of the business.”
AUTHOR
Laura Dew
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