AMP +4.79%: traded higher after reporting the 1H25 results that showed some promise, with earnings ahead of expectations.
- Underlying profit of $131 million, was +9.2% y/y and ahead of estimates $107.7 million
- Interim dividend per share $0.02
- Underlying ROE 7.4% vs. 6.5% y/y
The ROE is the story here, as they scale their platform business and growth the banking side, AMP’s returns will improve (off a low base). They guided to ‘controllable’ costs of $600m, in line with expectations.
Their North platform is doing well, generating margins of 43bps on improving flows. The Banks margins are low (NIM @ 1.3%), but these too should improve.
- AMP has turned the corner, has reinvented itself nicely, and now looks poised for ongoing growth.
MM is positive on AMP
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