AMP holds relatively steady
Diversified financial services business AMP held relatively steady over the first half of 2009, with profit attributable to shareholders falling by 1 per cent to $362 million.
AMP’s overall result was supported by improvements in the performance of its wealth protection business and some parts of its wealth management business, but was impacted by losses in AMP Capital Investors.
AMP Capital Investors’ operating earnings fell 45 per cent to $43 million, compared to $78 million in the first half of 2008. The group said this was a reflection of “lower management, performance, and transaction fees in tough markets”. Capital Investors’ bottom line suffered despite cost cutting of 11 per cent in the first half.
In the group’s wealth management business (which includes financial planning, superannuation, pensions and banking businesses), operating earnings fell by 9 per cent to $129 million.
AMP Financial Planning net cash flows were down 20 per cent on the previous corresponding period to $400 million, with discretionary contributions into super still significantly down.
However, Hillross net cash flows were up 24 per cent to $92 million, with the previous period having been impacted by the departure of a practice from the group.
The group said both AMP Financial Planning and Hillross had grown planner numbers in the first half.
AMP’s wealth protection business was buoyed, with operating earnings up 9 per cent to $83 million, supported by sales growth and improved claims management, the group said.
Meanwhile, in the group’s mature business segment — which includes fixed and lifetime annuity products — operating earnings fell by 19 per cent to $72 million.
The group prefers to report on underlying profit, which was $367 million for the period, down 16 per cent compared to the first half of 2008. However, this doesn’t include a $12 million loss attributable to a minority interest, which brings its total profit to $50 million, down from $366 million in the first half of 2008.
AMP has declared an interim dividend of 14 cents per share, 50 per cent franked.
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