Alexis George
AMP FY 22 results highlights
- Solid financial performance in a challenging macroeconomic environment.
- Significant progress on strategy to simplify and reposition AMP with strong delivery against FY 22 commitments.
- NPAT (underlying) of A$184 million (FY 21: A$280 million), predominantly reflects investment market volatility on assets under management (AUM), strategic repricing in wealth management businesses and net interest margin (NIM) compression in AMP Bank. These factors were partially offset by continued delivery on cost reduction.
- NPAT (statutory) increased to A$387 million (FY 21: A$252 million statutory loss) supported by the gain on sale of the infrastructure debt platform in FY 22, partly offset by impairments announced in January 2023 and costs to separate the AMP Capital businesses.
- AMP Bank residential mortgage book grew A$2 billion whilst improving NIM during 2H 22 and maintaining strong credit quality of the loan book. Mortgage book growth was 1.5x system, excluding the acquisition of the Nano loan book.
- Australian Wealth Management AUM of A$124.2 billion (FY 21: A$142.3 billion) was impacted by the decline in investment markets, and net cash outflows of A$5.3 billion (FY 21: A$7.2 billion)
- Strong balance sheet with A$923 million surplus above Board target capital level as at 31 December 2022.
- Continued to progress capital management program of A$1.1 billion announced at 1H 22 results including A$267 million of a targeted A$350 million on-market share buyback completed as at 31 December 2022.
- FY 22 final dividend declared of 2.5 cents per share (franking of 20 per cent), announced as part of the A$1.1 billion capital management program.
- Disciplined focus on costs across the group, with controllable costs, excluding AMP Capital discontinued operations, reduced by A$54 million.
Update on AMP Capital transactions
- Completed the sale and transfer of the international infrastructure equity business to DigitalBridge in February 2023, realising a total value of A$582 million and potential for additional cash earn-out of A$180 million contingent on future fundraisings by new owners.
- One outstanding regulatory approval required in China to complete the sale of the real estate and domestic infrastructure equity business to Dexus. Continuing to work through an alternative transaction structure.
AMP Chief Executive Alexis George said: “We have made excellent progress on the delivery of the strategy that we announced in November 2021, setting us on the path to a new AMP. Our strategic focus has been on simplifying our operations and repositioning AMP as a leading wealth management and banking business in Australia and New Zealand. We are now focused on driving growth in our core businesses and exploring new business opportunities for longer term growth.
“We have now completed both the sale of the infrastructure debt platform and the international infrastructure equity business. We continue to work towards completion of the sale of the real estate and domestic infrastructure equity business. The completion of these transactions enables AMP to become a simplified and more customer-focused business. Off the back of those transactions, we have committed to returning $1.1 billion of capital to shareholders, and I am pleased that we are able to deliver an FY 22 final dividend to shareholders of 2.5 cents per share as part of that, in addition to the $350 million on-market share buyback that we currently have underway.
“Our profit for the year reflects the challenging economic environment we are facing, as well as strategic decisions to reprice our offers in Master Trust and Platforms to deliver both highly competitive and attractive offers. We are seeing positive momentum around the transformation of our Advice business, where we have more than halved the losses, and our key growth businesses – AMP Bank and Platforms –are starting to benefit from the investments we are making in those businesses. In our flagship North platform, we have continued to increase the percentage of flows from the independent financial adviser market.
“I am proud of the significant progress we have made in 2022. We have made several new appointments to the executive and management team during the year to position the business to deliver on our strategy, and drive a culture of accountability and inclusion. Strategically and operationally, we have a clear path forward for AMP as a leader in wealth management and banking, building on our purpose – helping people create their tomorrow.”