Financials
Amp Limited (AMP)
AMP Limited is a prominent Australian financial services company providing wealth management, retirement, and banking solutions primarily in Australia and New Zealand. The company operates through its flagship North wealth platform, offering superannuation and investment products, and through AMP Bank, which provides residential mortgages and retail deposits. Following a significant strategic overhaul, AMP is focused on simplifying its business to concentrate on these core domestic operations.
Market Cap
A$4.2B
Shares on Issue
N/A
Price Chart
AI Analysis
AMP is in the midst of a multi-year turnaround strategy aimed at stabilising its core businesses after a period of significant disruption, including fallout from the Royal Commission and major asset sales. Recent performance has been mixed; while the AMP Bank division continues to deliver solid growth with a high-quality loan book, the wealth management arm still faces challenges with net cash outflows, albeit at a moderating pace. Key metrics for investors are the Assets Under Management (AUM) on the North platform, net interest margin (NIM) for the bank, and progress on its group-wide cost reduction program, which is critical for restoring profitability.
The company's growth outlook is heavily dependent on the successful execution of its simplification strategy. Key catalysts include achieving sustained net cash inflows into its wealth management platforms, driven by improved investment performance and adviser sentiment. Further growth in AMP Bank's mortgage portfolio in a competitive market remains a core objective. Strategically, AMP aims to leverage its simplified structure and strengthened balance sheet to return capital to shareholders via buybacks while investing in technology to enhance its platform offerings and rebuild its brand trust with consumers and financial advisers.
Bull Case
- • Successful execution of the turnaround strategy could unlock significant value, as the market may be undervaluing the core, profitable AMP Bank and the scalable North wealth platform.
- • AMP Bank remains a high-quality, consistently growing business with a strong capital position and a prime residential mortgage book, providing a stable earnings foundation.
- • A strengthened balance sheet following asset divestments provides flexibility for further capital management initiatives, such as on-market share buybacks, which can be accretive to earnings per share.
Bear Case
- • Failure to reverse persistent net cash outflows in the wealth management division continues to be the primary risk, eroding the future earnings base and AUM.
- • The Australian wealth and banking sectors are intensely competitive, with AMP facing pressure from larger banks, industry super funds, and more nimble platform providers, which could compress margins.
- • Significant reputational damage from past events still lingers, posing a long-term headwind to rebuilding trust and attracting new clients and financial advisers to its network.
Recent Announcements
FY 25 Results webcast
Update to Group costs and CTI methodology and FY 26 costs
🚨 Price SensitiveAMP has updated its cost reporting methods, which may impact the interpretation of financial performance for investors; it is recommended that potential investors review this update carefully before making an investment decision.
Blair Vernon appointed AMP CEO. Alexis George to retire
🚨 Price SensitiveBlair Vernon has been appointed as the new CEO of AMP, while long-serving executive Alexis George is set to retire effective immediately. Investors are advised to review their portfolinA company's strategic direction and potential impact on financial performance under
Notification of cessation of securities - AMP
FAQs
What does AMP do?
AMP is a financial services company focused on two main areas: wealth management, which includes superannuation, investment platforms (like North), and financial advice; and retail banking through AMP Bank, which offers home loans, savings accounts, and term deposits.
Is AMP a good investment?
AMP is considered a turnaround investment story, carrying both potential rewards and significant risks. The bull case rests on management successfully simplifying the business and growing its core Bank and Platform divisions, potentially leading to a share price re-rating. However, risks include ongoing fund outflows, intense competition, and the challenge of rebuilding its brand, making it suitable for investors with a higher risk tolerance.
What drives AMP's share price?
Key drivers for AMP's share price include net cash flows in its wealth management business (a shift to positive inflows would be a major catalyst), the profitability and loan book growth of AMP Bank, the successful execution of its cost-saving initiatives, and capital management activities like share buybacks.
Key Metrics
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