ENP Newswire -
Release date- 21082014 - AMP reports
3 per cent on
Underlying profit2 was
The Board has declared a 9 per cent increase to the interim dividend to
'We are continuing to transform our core Australian business with a market leading mobile platform launched 3 and a new operating model in place to focus on the customer and to drive sustained growth as the Australian wealth industry doubles in size4 by 2022.
'It is particularly pleasing to see AMP's offshore strategy already delivering good cashflows while building strong growth potential in the long term from partnerships with national champions in
'The wealth protection business is stabilising, with the improvement plan delivering encouraging results however, we have more work to do,'
Key performance measures
Cost to income: Controllable costs have been managed tightly with the rise in income more than offsetting a
AMP Australian wealth management net cashflows were
Underlying return on equity: Increased 1.3 percentage points to 12.5 per cent in 1H 14, reflecting the 16 per cent increase in underlying profit, partially offset by higher average capital.
'These results demonstrate the real strength of AMP's business franchise, scale and operating leverage, when both investment markets and investor confidence are more positive,'
In wealth management, operating earnings for 1H 14 were up 16 per cent compared with 1H 13, reflecting increased investment related income from higher customer account balances, a strong rebound in net cashflows and good cost control in a growing business.
In wealth protection, operating earnings were
The life insurance sector continues to face both structural and cyclical change and a range of initiatives are underway to address these factors. These include improved customer retention campaigns and additional resources to handle customer claims more effectively and to help income protection customers get back to work more quickly.
'Improving the performance of the insurance business remains a key area of focus as we introduce a series of actions to improve the management of claims and customer retention in order to deliver benefits to both our customers and shareholders,'
Other key highlights
Fifth quarter of more than
AMP a market leading provider in wealth management: Number one market share in retail superannuation and pensions with 20 per cent, individual risk insurance with 18 per cent and in financial advice with 22 per cent of the market.
11 per cent compared with 1H 13, reflecting an increase in residential mortgages with AMP aligned advisers contributing almost a quarter of new business in a period of intense competition. Lending growth was supported by continued deposit inflows which were up 6 per cent on 1H 13.
Corporate Super wins: 16 new SME and large corporate mandates in 1H 14 to transition over the next 6-12 months
Adviser numbers stable in a changing regulatory environment: AMP's adviser network remains the largest adviser network in
AMP continues to hold an appropriate capital surplus, with
AMP maintains a strong balance sheet, with little change to gearing and interest cover, and has access to significant liquidity.
AMP continues to offer a DRP to eligible shareholders, no discount will apply to the allocation price. Shares will again be bought on market and the dividend will be 70 per cent franked with the unfranked amount being declared as conduit foreign income.Description: AMP_sign-off
1AMP's profit measures exclude MUTB's 15 per cent share of
2 Underlying profit is the basis on which the AMP Board determines the dividend payment and reflects the business performance of AMP. It is AMP's preferred measure of profitability as it removes one off costs, the impact of some investment market volatility and accounting mismatches.
3 This platform has released two mobile and one tablet app since
4 DEXX&R projections
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