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Vertical integration drives AMP wealth results

AMP has announced $393 million net half-yearly profits, pointing to strong results on its platform and wealth businesses and product recommendation from a growing adviser network.

Outgoing chief executive Craig Dunn – he is to be replaced by former AMP Financial Services managing director Craig Meller, the company’s board has announced – said the AMP wealth management business was a strong contributor to the overall results.

“The combined earnings from all businesses, excluding our wealth protection business, were up 17 per cent, as net cashflows increased significantly in our wealth management business, investment markets continued to improve and we drove down costs,” Mr Dunn said.

Operating earnings for the wealth business for 1H 13 were up 20 per cent compared with 1H 12, according to the published results.

In addition, the combined assets under management on the North platform and AMP Flexible Super was $15.5 billion as at 30 June 2013 – up 80 per cent on 12 months ago, off the back of “more AMP planners choosing to recommend the North platform to their customers”.

The growth of the company’s licensee channels has continued, growing from 3,636 to 3,680 total AMP advisers from financial year 2012 (FY12) to FY13.

“All of AMP’s financial planner groups experienced good uplifts in net cashflows,” the report states.