AMP Limited

For the first half, AMP reported underlying NPAT of $174 million, up 33%, and statutory NPAT of $154 million, up 57%. Revenue grew 6% while controllable costs rose 4%, improving group EBIT margin by 2.5 percentage points to 30.7% and the cost-to-income ratio to 60.5%. EPS increased 33% and ROE rose to 9.8%. The group generated $236 million of surplus capital, returned $201 million to shareholders in the half, and now has total pro forma FY '26 capital returns of $425 million including a further $150 million buyback and a $0.03 interim dividend (20% franked). Platforms delivered $61 million of underlying NPAT, up 15%, with record net cash flows of $3.1 billion; Super & Investments delivered $32 million, up more than 18%; New Zealand delivered $18 million, down 5% in AUD but up 5% in local currency; China partnerships contributed $56 million, more than double prior period. Management said FY '26 guidance keeps controllable costs in line with prior guidance, expects AMP Bank NIM to remain broadly stable at 1.25%, and lifted partnerships guidance to a 12% to 15% annualized return on investment across the portfolio.

Blair Vernon framed the half as evidence that AMP’s transformation is translating into better earnings, stronger cash generation, and more capital returns. He emphasized the strategy of growing wealth businesses, accelerating AMP Bank GO and capital release, and using AI to improve adviser productivity and internal efficiency, while also strengthening cyber and governance controls. His tone was confident and upbeat, but pragmatic, repeatedly noting that second-half execution still matters, especially in the bank and on AI-linked simplification.

Jackie Cleary highlighted broad-based earnings improvement, with wealth businesses contributing more than 75% of underlying NPAT and China partnerships contributing more than 85% of group underlying NPAT. She pointed to $236 million of surplus capital generated, $201 million returned to shareholders, $56 million of DTA utilization, and a remaining on-balance-sheet net DTA balance of $418 million. She also noted platform momentum, with revenue up 6% vs costs up 2% in Platforms, Super & Investments achieving positive net cash flow for the first time since 2017, and AMP Bank still investing in GO and capital efficiency, with NIM expected to stay around 1.25%.

Analysts focused heavily on China partnerships, asking whether the sharp earnings growth and margin improvement were one-off or driven by structural operating leverage. Management said it was not one-off, attributing it to scale, operating leverage, and a mix effect that largely washed through after earlier regulatory changes, while noting Pillar 2’s large addressable market and Pillar 3 as an early-stage upside. The other major topic was the bank: management explained that securitization and AMP Bank GO are part of a broader funding-mix shift, that each $1 billion of securitization roughly frees up $30 million to $40 million of capital, and that the reported NIM impact should be viewed net of GO growth, legacy deposit runoff, and capital optimization. Analysts also pressed on dividend sustainability and capital returns; management said the $0.03 interim dividend resets prior guidance and that future dividends will be reviewed at FY '26.