Wealth arm boosts AMP profit
AMP has seen its full-year net profit rise 10 per cent to $972 million, helped along by strong growth in its wealth management arm and increased platform activity.
In a statement to the ASX this morning, AMP said it would increase its final dividend by 4 per cent, up from 13.5 cents to 14 cents. The wealth management giant also saw its underlying profit rise 7 per cent to $1.12 billion for the full year to 31 December 2015.
"This is a very good performance against a backdrop of challenging markets in the second half," AMP chief executive Craig Meller said.
"Momentum continued across Australian wealth management and AMP Capital, which delivered a particularly strong result as our international investment management profile expands, both in China and more broadly."
Strong net cash flows helped to drive the wealth management operating earnings up by 10 per cent to $410 million for the year.
Retail and corporate super net cash flows on AMP platforms increased 5 per cent to $3.78 billion, the company said. However, the group's wealth protection division dipped slightly from $188 million in FY14 to $185 million in FY15.
In an update on its business efficiency program, AMP said it would make cuts across the business and was looking towards $200 million in savings by the end of the 2016 financial year.
"Our business efficiency program is on track and we continue to focus on the improvement of our wealth protection business, with the new claims process providing a better outcome for customers and shareholders," Mr Meller said.
AMP also pointed to further developments in its advice offering and said it had continued to develop "a new goals-based face-to-face advice experience," after positive results from five pilot sites.
"The trial is being expanded in FY16 as part of AMP's ambition to set a benchmark for high quality, professional advice," the company said.
The 2015 final dividend will be franked at 90 per cent, up from 80 per cent in 2014 with the unfranked amount being declared as conduit foreign income.
"AMP has a clear focus to be a more customer-centric, efficient and international organisation. The execution of this strategy is unlocking the long-term potential of our business, which we are confident will continue to deliver value for our shareholders," Mr Meller said.
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