Wealth manager’s underlying profit offers good news
Asset manager and financial services giant AMP has highlighted headwinds for its large businesses after announcing a decline in full-year earnings.
The group’s full-year net profit for calendar year 2025 was $133 million, down 11 percent compared to 2024.
The result came from resolving old legal issues and simplifying the work.
However, underlying net profit rose almost 21 per cent to $285 million, helped by higher results in its pensions and investment arm and its Northern super pension and pension package platform business, which were at the top of the market consensus.
AMP Bank’s underlying profit fell almost 10 per cent to $55 million.
Chief executive Alexis George, who will step down in March and be replaced by chief financial officer Blair Vernon, said there were “significant headwinds” in the wealth and pensions sector.
“We are well positioned to continue to drive organic growth and also have the capacity to participate in inorganic opportunities as they arise,” he said.
“We will only consider these when there is a compelling case to improve our scale or accelerate the development of our capabilities.”
Overall, Ms George said 2025 was an important year for AMP in terms of resolving legacy issues and stabilizing the group portfolio.
“This has driven a renewed focus on winning in the segments we play, growing the wealth business and advancing the vision of being the place where customers come to plan for a dignified retirement,” he said.
AMP has previously been involved in class-action lawsuits following the banking royal commission, which concluded in 2019, and found that it had not charged customers for any services, although some cases did not materialize.
AMP will pay a final dividend of two cents per share, bringing its full payout for the year to four cents.
Securities of AMP, which has a market value of $4.3 billion, closed at $1.75 on Wednesday.
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