AMP FY24 NPAT declines with advice sale
AMP has reported a 43 per cent reduction in statutory net profit after tax (NPAT) for FY24, thanks to business simplification costs and the sale of its advice division.
In its full-year 2024 results, the firm said statutory NPAT moved from $265 million in FY23 – which had been boosted by gains from the sales of AMP Capital and SuperConcepts – to $150 million.
The lower figure for FY24 reflected business simplification costs and the sale of its advice division in December 2024 as the company transformed itself. Employment, professional services and property costs decreased, the firm said, but technology and project costs increased.
Some $60 million was spent on the business simplification in FY24, and the total costs are expected to be $150 million by the project’s completion.
Underlying NPAT was $236 million, up 15 per cent from $205 million. Specifically on platforms, underlying NPAT was up 19 per cent to $107 million, and superannuation and investment had an underlying NPAT of $67 million, up from $53 million.
Net cash outflows (excluding pension payments) were $1 billion in superannuation and investment as “a result of resilient inflows and a focus on retention”. The figure was a notable improvement on FY23 outflows of $6.4 billion which had been impacted by mandate losses.
On its platforms, it said it saw a 96 per cent increase in net cash flow from $1.4 billion to $2.8 billion as a result of higher inflows from the growth in North managed portfolios which reached $19.1 billion in assets under management. During the year, the firm signed 99 new distribution agreements with AFSLs for its North platform.
Total platform assets under management stand at $79.8 billion, up from $71 billion at the start of the year.
The company declared a final dividend of 1 cent per share, 20 per cent franked, which brings the FY24 dividend to 3 cents per share.
With the divestment of advice to AZ NGA and Entireti, the firm is now positioning itself to be a leader in retirement. This includes benefiting from trends in growing superannuation assets, ageing population and high household wealth as the total addressable super and investment market is $4.1 trillion, it said.
In 2025, it is looking to lead on retirement innovation with new retirement modelling tools and tailored investment options for retirees.
Chief executive, Alexis George, said: “2024 was another year of strategic delivery for AMP as we build positive performance momentum and focus firmly on growth.
“We sold and transitioned the advice business, hit cost targets and completed our $1.1 billion capital return program. Our wealth businesses are competing strongly in their chosen markets, driving positive performance, and we’re launching new offers including digital advice.
“In our North platform there has been continued adviser take up of our innovative retirement products and managed portfolios, which is driving inflows. In superannuation and investments, our strong member proposition, including top-quartile investment returns for the year, are supporting the continued improvement in cash flows.
“Having successfully completed the advice transaction in December 2024, AMP is positioned to drive growth and build on opportunities in our wealth businesses to become a pre-eminent retirement specialist, and as a leading digital bank.”
AUTHOR
Laura Dew
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