AMP Limited

AMP said underlying NPAT for 1H26 increased 33% to $174 million, while statutory NPAT rose 57% to $154 million. Revenue was up 6% and controllable costs were up 4%, with EBIT margin improving 2.5 percentage points to 30.7%; EPS increased 33%, ROE was 9.8%, and the cost-to-income ratio improved to 60.5%. Platforms delivered $61 million of underlying NPAT, record net cash flows of $3.1 billion, a 53.5% cost-to-income ratio, and 32.9% return on tangible equity; Super & Investments delivered $32 million of underlying NPAT and positive net cash flow for the first time since 2017; New Zealand contributed $18 million; China partnerships contributed $56 million; and AMP Bank’s NIM was broadly stable at 1.25%. For the full year, management said wealth margins remain in line with prior guidance, AMP Bank earnings will remain under near-term pressure as GO scales and cost savings are realized, NIM is expected to stay broadly stable at 1.25%, partnership ROI guidance was raised to 12% to 15%, controllable costs are expected to be in line with prior guidance, and the Board will review the final dividend at FY26.

Blair Vernon framed the half as evidence that AMP’s simplified wealth-focused strategy is gaining traction, with momentum in platforms, super and China while the bank is being repositioned for capital release and efficiency. He emphasized retirement outcomes, adviser productivity, and AI-enabled simplification as the main strategic priorities, including new tools in North and a new app for AMP Super. His tone was constructive and confident, but he repeatedly stressed execution discipline, risk management, and the need to keep harvesting value from legacy assets and the bank.

Jackie Cleary highlighted broad-based earnings growth, with wealth businesses contributing more than 75% of underlying NPAT and more than 85% when including China partnerships. She pointed to $236 million of surplus capital generated in the half, $201 million returned to shareholders, a further $56 million of DTA utilization, and remaining on-balance sheet net DTA of $418 million. She also flagged higher pro forma capital returns of $425 million for FY26 after the new buyback and interim dividend, and said AMP Bank GO deposits reached $1.7 billion while NIM stayed broadly stable at 1.25% as funding benefits were partly offset by capital optimization activity.

Analysts pressed on whether China partnership earnings strength was driven by one-offs or real operating leverage; management said there were no one-offs and attributed the uplift to AUM growth, mix, and falling cost-to-income ratios, while noting some historical mix effects from prior regulatory changes had washed through. Questions on the bank focused on securitization, capital release, and NIM pressure; management said $1 billion of securitization activity typically releases about $30 million to $40 million of capital, and explained that the NIM bridge reflects the net effect of GO deposit growth, legacy deposit runoff, and capital relief trades rather than securitization in isolation. Analysts also asked about China revenue margins and payout ratios, with management saying product mix had normalized, Pillar 2 remains the main growth engine, and there is room to continue discussing capital efficiency with partners, though growth remains the priority.