AMP (ASX: AMP) – AMP 1H 2026 Results Presentation

AMP Limited reported underlying net profit after tax of $174 million for the first half of 2026, a 33% increase from the prior corresponding period, alongside a 57% jump in statutory profit to $154m as legacy litigation matters largely concluded. The company returned $201 million to shareholders during the half through a combination of dividend and share buyback, with management flagging an additional $150 million on-market buyback for the second half. These results indicate AMP has successfully transitioned from simplification mode into a growth and capital return phase.

The earnings lift was driven primarily by the Platforms division, where net cashflows surged 33% to $3.1 billion. This unit now manages $92.7 billion in assets under management, benefiting from the activation of new financial advisers on the North platform and organic growth from existing adviser relationships. The Superannuation and Investments business also delivered a turning point, recording positive net cashflows of $76 million in the half. This marks the first positive cashflow period for S&I since 2017, reversing a trend of outflows that has weighed on the business for nearly a decade. AMP attributed the turnaround to higher KiwiSaver contribution rates in its New Zealand operations, lower outflows, and strong growth in managed funds.

AMP’s China partnerships contributed $56 million to profit in the half, up 107% year-on-year. The company holds nearly 20% of China Life Pension Company (CLPC), which is benefiting from the rapid expansion of China’s occupational pension system. CLPC’s annualised return on invested capital improved to 16%, compared with 9% in the prior half, reflecting operating leverage in the underlying business. Management expects the combined partnerships to deliver 12 to 15% annualised returns in the full year ahead.

The group also demonstrated improved cost discipline, with the cost-to-income ratio contracting to 60.5% from 63% in the prior half. Platforms’ EBIT margin expanded significantly to 42.1%, showing the scalability of the platform model as revenue grows while costs remain controlled. However, the bank division continues to weigh on returns, with underlying profit declining 5% to $20 million as management invests in growing the GO deposits platform to address funding mix challenges.

Return on equity increased to 9.8% from 7.4%, though remains below levels investors typically expect from a major financial services group. Management flagged FY26 guidance that includes targeting 40 to 41 basis points in Platforms AUM-based revenue margins and 60 to 61 basis points for S&I, with controllable costs expected at $630 to $640 million. The company plans to escalate capital management and release further capital from the bank and non-strategic partnerships.

Key metrics to monitor include whether S&I can sustain positive cashflows, the pace of capital release from the bank operations, and whether the Platforms growth story can deliver the operating leverage and margin expansion management suggests is available. Dividend sustainability and the pace of capital return through buybacks will also warrant close attention as management navigates the balance between shareholder returns and growth investment.

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About AMP Limited (ASX: AMP)

AMP Limited provides banking, superannuation, retirement and investment services across Australia and New Zealand. The company operates through multiple segments including AMP Bank (offering residential mortgages and transactional banking), Platforms (providing superannuation and retirement solutions), and New Zealand Wealth Management. AMP also offers wealth management solutions such as KiwiSaver, corporate superannuation, retail investments and general insurance.

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