Planning drives AMP result
Craig Dunn
AMP Financial Services has proved pivotal to AMP Limited reporting a 10 per cent increase in underlying profit to $960 million for the year to December 31, 2007.
The company said that one of the highlights for the year had been the 47 per cent growth in AMP Financial Service’s retail net cash flows, while AMP Capital Investors had shown 5 per cent growth in assets under management.
Commenting on the result, AMP’s newly appointed chief executive Craig Dunn said that continued disciplined execution of strategy had been the reason for strong results in AMP’s two key growth businesses — Contemporary Wealth Management and AMP Capital.
“AMP is well-positioned in growth markets with an iconic brand, strong financial planner network, high quality products and services, consistently strong investment performance and a performance-focused culture,” he said.
Dunn suggested AMP, while not immune from the recent investment market volatility, was well placed to withstand the conditions.
Looking specifically at AMP Financial Services, the company said operating earnings had risen by 25 per cent to $306 million, with the ‘better super’ changes having had a particular influence.
It said that increased investment to drive growth in financial planner numbers had started to show results, with Australian planner numbers up 6.5 per cent to 1,643, reflecting initiatives such as the AMP Planner Academy.
AMP Capital Investor’s operating earnings rose 30 per cent to $150 million, with the company benefiting from broader distribution and client bases.
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