AMP Limited recorded a substantial improvement in first-half profitability, with statutory net profit after tax of A$154 million for the six months ended June 30, compared with A$98 million in the same period a year earlier, representing a 57% increase.
Group revenue rose 4% to A$1.425 billion. AMP's preferred performance metric, underlying profit, climbed 32.8% to A$174 million from A$131 million a year earlier. Underlying earnings per share increased to 6.9 cents from 5.2 cents, while underlying return on equity strengthened to 9.8% from 7.4%.
Drivers of earnings
The bulk of the earnings improvement originated in the Partnerships & Group segment, where profit expanded to A$43 million from A$2 million in the prior comparable period. Profit contribution from AMP's China partnerships rose 107.4% to A$56 million, a change the group attributed to continued growth at China Life Pension Company. AMP also cited higher investment income from Group cash holdings and lower interest expense on corporate debt as contributors to the uplift.
AMP's Platforms division, the group's largest profit source, delivered a 15.1% increase in profit to A$61 million, supported by higher net cashflows and favourable market conditions. The Superannuation & Investments business likewise saw profit rise 18.5% to A$32 million.
Offsetting weaknesses
Not all divisions matched the broader improvement. AMP Bank's profit fell 33.3% to A$20 million as the company maintained investment in its AMP Bank GO digital initiative. New Zealand Wealth Management reported a 5.3% decline in profit, which AMP attributed mainly to currency effects.
Total assets under management across Platforms, Superannuation & Investments and New Zealand Wealth Management increased 8.9% to A$167.6 billion. The group's cost-to-income ratio improved to 60.5% from 63.0%.
Capital returns
The board declared an interim dividend of 3.0 cents per share, franked at 20%, up from the 2.0 cents final dividend in the prior period. AMP also intends to launch a second on-market share buyback tranche of up to A$150 million, which would bring total buybacks for 2026 to as much as A$300 million.
The half-year results reflect a mix of concentrated earnings drivers and selective reinvestment, with management returning capital to shareholders even as it funds the digital growth agenda in the banking arm.