AMP shares climbed 6.0% to A$2.31, marking the highest level for the stock in seven years, after the group released a robust half-year financial update.
The company reported an underlying net profit after tax of AUD 174 million, representing a 33% increase compared with the prior year. Statutory net profit after tax (NPAT) rose 57% to AUD 154 million. Both outcomes outperformed the analyst consensus, which was around AUD 142 million, and the underlying result sat at the top end of AMP's guidance range of AUD 170-180 million that the company issued in mid-July.
A prominent contributor to the improved half was AMP's China partnerships. Combined earnings from China Life Pension Company and China Life AMP Asset Management more than doubled, delivering AUD 56 million to the group's half-year result.
Alongside the earnings release, management announced a new AUD 150 million on-market share buyback. The company also increased its dividend payout ratio from 35% to 41%, a move management framed as a signal of confidence in the durability of the profit recovery.
The stronger AMP performance came against a favourable market backdrop. The S&P/ASX 200 pushed to a fresh record high on the day, providing a constructive environment for the stock's rally.
Financial details at a glance
- Underlying NPAT: AUD 174 million - up 33% year-on-year.
- Statutory NPAT: AUD 154 million - up 57% year-on-year.
- Analyst consensus: approximately AUD 142 million.
- Company guidance (mid-July): AUD 170-180 million - result at top end.
- China partnerships contribution: AUD 56 million - more than doubled versus prior period.
- Capital returns: AUD 150 million on-market buyback announced.
- Dividend policy: payout ratio raised to 41% from 35%.
The combination of an earnings beat, stronger earnings from key joint ventures in China, and shareholder-friendly capital management measures supported a material intraday uplift in the stock price. The broader market's upward momentum, evidenced by the S&P/ASX 200 reaching a record, added to the positive trading environment for AMP.