AMP diversity steadies profit
(26 August 2009 – Australia) AMP has announced only a slight dip in net profits of a single percent from this time last year to A$362 million, on the back of a diverse earnings base.
Using underlying profit, which is AMP’s key measure of profitability as it removes investment market volatility, profit actually fell by a greater amount, down 16 percent compared to the first half of 2008, to A$367 million for the first half of 2009.
The Contemporary Wealth Management unit, which includes the financial planning, superannuation, pensions and banking businesses, saw a nine percent reduction in profit this half-year, although its protection counterpart counteracted this loss.
Favourable earnings growth in AMP’s Australian risk insurance business (Contemporary Wealth Protection) helped somewhat to alleviate the profit fall in wealth management, as did earnings growth in AMP’s banking division.
Banking related revenue increased by 34 percent to A$75 million for the first half of the year.
In a focus on diversity, AMP grew its banking business, increasing deposits by 18 percent and its mortgage book by 2 percent. Deposit growth increased following the launch of AMP First, a high-interest savings and transaction account, the bank said.
It was, however, a tough time for AMP Capital Investors, which saw a 45 percent profit fall compared to the first half of 2008, with earnings of A$43 million.
AMP Chief Executive Officer Craig Dunn said that while the operating conditions of the past six months had proved difficult, the solid interim result reflected AMP’s diverse earnings base and the resilience of its business.
Mr Dunn said over the medium to long term, the outlook for wealth management in Australia remained attractive, underpinned by favourable demographics and market growth.
The Contemporary Wealth Management unit, which includes the financial planning, superannuation, pensions and banking businesses, saw a nine percent reduction in profit this half-year, although its protection counterpart counteracted this loss.
Favourable earnings growth in AMP’s Australian risk insurance business (Contemporary Wealth Protection) helped somewhat to alleviate the profit fall in wealth management, as did earnings growth in AMP’s banking division.
Banking related revenue increased by 34 percent to A$75 million for the first half of the year.
In a focus on diversity, AMP grew its banking business, increasing deposits by 18 percent and its mortgage book by 2 percent. Deposit growth increased following the launch of AMP First, a high-interest savings and transaction account, the bank said.
It was, however, a tough time for AMP Capital Investors, which saw a 45 percent profit fall compared to the first half of 2008, with earnings of A$43 million.
AMP Chief Executive Officer Craig Dunn said that while the operating conditions of the past six months had proved difficult, the solid interim result reflected AMP’s diverse earnings base and the resilience of its business.
Mr Dunn said over the medium to long term, the outlook for wealth management in Australia remained attractive, underpinned by favourable demographics and market growth.
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