Blair Vernon

AMP Limited has announced the appointment of Blair Vernon as its new Group Chief Executive Officer (CEO) following a thorough internal and external search process conducted by a top tier executive search firm. Current CEO, Alexis George, will retire from executive roles effective 30 March 2026 after a distinguished career in financial services. Ms George has successfully led AMP since August 2021, guiding the organisation through a period of significant transformation and growth.

Mr Vernon, AMP’s Chief Financial Officer, brings extensive experience from previous financial services leadership roles in Australia and New Zealand. His appointment ensures a seamless transition and ongoing execution of key strategic initiatives.

This leadership change marks a new chapter for AMP, building on the strong foundation established under Ms George’s tenure.AMP Chair Mike Hirst commented: “On behalf of the Board, I thank Alexis for her dedicated service and leadership at AMP. Alexis has guided AMP through a significant transformation that has streamlined the organisation and focused each business on its strongest growth opportunities. She stabilised the business and oversaw the successful sale of AMP Capital and the Advice business whilst building a customer focused culture.

“Alexis has advanced AMP’s transformation and culture and delivered strategic initiatives that will underpin the next phase of growth. In particular, her clear achievement of building a strong executive team will ensure continued momentum in the business and position AMP for future success. I wish Alexis well for the future.

“After a rigorous search and selection process, the Board was unequivocal in its view that Blair brings the right breadth of experience and capability to lead AMP in its next phase of growth as CEO. He is keen to deliver strong performance for our stakeholders and has played a key role in improving our position in the financial services industry.

“Blair has built confidence by tightening financial management, steering our capital return program and successfully executing both the AMP Capital separation and the AMP Advice sale and partnership. The Board congratulates Blair on his appointment and looks forward to working with him and our excellent leadership team to build on the positive momentum within the business.”

Alexis George commented: “AMP has undertaken significant transformation to become a simpler, customer-focused, and growth-oriented organisation. I am proud of our achievements over the past 5 years, particularly helping our customers retire with confidence. While it was not an easy decision to retire from executive roles, I am confident that AMP is well positioned for future success. Leading AMP, a company integral to Australia and New Zealand, has been an honour. I wish Blair and AMP continued success and will remain a strong supporter.”

Blair Vernon commented: “It’s a privilege to take on the leadership of AMP, a company with a proud legacy of serving the financial needs of Australians and New Zealanders. AMP is delivering against its strategy, and I look forward to continuing to work with my colleagues in executing our strategic ambitions and delivering positive outcomes to customers, shareholders, communities and colleagues. I want to thank Alexis for her incredible contribution to AMP and all its stakeholders, and for her support over so many years. I wish her well for the future and look forward to continuing to work with her during our transition.”

A process will also be undertaken to appoint a new Chief Financial Officer.

Blair Vernon biography

Blair has over 30 years’ experience across the financial services sector in New Zealand and Australia.

Blair commenced in the role of AMP Group CFO in July 2023. From May 2022 until July 2023, Blair served as Group Executive Transformation for AMP and Group Executive for the New Zealand business. During this period Blair established the transformation and simplification program, including the divestment of AMP Capital assets. Blair was previously CEO/Managing Director of New Zealand Wealth Management from January 2017, and prior to this served as AMP’s Director Retail Financial Services; Director of Advice & Sales and General Manager Marketing and Distribution.

From August 2020 to January 2021, Blair served as Acting CEO for AMP Australia, where he was responsible for AMP’s wealth management and banking divisions with a focus on strengthening customer-led outcomes.

Summary of new CEO contract:

• Salary (including superannuation) of A$1.4million per annum.
• Short-term incentive opportunity equivalent to 100% of salary for on target performance, and 125% at maximum, subject to achievement of performance hurdles and other terms.
• A maximum long-term incentive opportunity with a target value equivalent to 100% of salary, subject to achievement of performance hurdles and other terms.
• Either party can terminate the agreement with six months’ notice. The Company may summarily terminate the CEO’s employment without notice in certain circumstances.
• There is a post-employment restraint of 12 months.

Summary of Ms Alexis George’s exit arrangements:

• Ms George will stay in the CEO role until 30 March 2026, after which time she will be available to the Company to assist with handover and ongoing support.
• All of Ms George’s incentives will be treated in accordance with her contract and the original offer terms, as previously disclosed.

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Alexis George

AMP has launched the Retirement Confidence Pulse, a new national barometer tracking how financially confident Australians feel about life after work.

The inaugural Pulse score is 50/100 – a wake-up call that too many of us still lack financial peace of mind about retirement. The full report is available here.

The rising cost of living and surging household expenses have seen the annual cost of a comfortable retirement climb by more than $13,000 in just five years, with new ASFA data showing Australian couples aged 65 and over now need more than $75,000 a year to maintain that lifestyle^[1].

Alexis George, AMP Chief Executive, said: “Australians over the age of 65 will make up nearly a quarter of our population within four decades – a demographic shift set to reshape the nation’s economic and social landscape.

“Yet, as this Pulse shows, despite growing super balances and national wealth, too many feel financially insecure about life after work – an issue that needs to be front and centre for policymakers and the superannuation industry.”

• Gender gap: Only 2 in 5 women feel confident about retirement, versus nearly 3 in 5 men.
• The “Sandwich Generation”: Australians in their 40s are among the least confident (under 2 in 5) as they juggle mortgages, kids and caring for ageing parents.
• Single mums under pressure: Single mothers recorded particularly low confidence levels with less than 1 in 5 in their 40s confident about retirement, the second lowest of all tested.
• Confidence doesn’t arrive at 65: More than 1 in 3 Australians 65+ still feel financially insecure, worried their savings won’t last.
• The “confidence dividend” of coupledom: Partnered Australians (close to 3 in 5) are more confident than singles (2 in 5).
• Divorce dents security – especially for women: Only 1 in 3 separated/divorced women feel confident, versus over half of separated/divorced men.
• Work matters: Jobseekers in their 40s show deepest concerns, with just over 1 in 10 confident.
• The income divide: Confidence rises with income – 3 in 4 on $190K–$250K feel confident, versus 2 in 5 under $45K.
• The squeezed middle: Just half of middle-income Australians ($45K–$135K) are confident.

From insights to action: The Retirement Confidence Hub

To help turn these insights into practical solutions, AMP has created the Retirement Confidence Hub.

Through its Advisory Committee, the Hub brings together some of the most respected experts in the industry – including AMP’s Chief Economist Dr Shane Oliver and AMP’s Director of Retirement Ben Hillier. Nicola Stokes, CEO of the AMP Foundation, joins the Committee, ensuring the cross section of social and community needs are also addressed.

The Retirement Confidence Hub – Mission Statement: Harness AMP’s expertise to bridge insight with practical industry applications, raise awareness of key social issues and opportunities, and inform policy reform, to help more Australians be financially confident about their retirement.

Chair of The Retirement Confidence Hub, Ben Hillier, said: “The Pulse is our scoreboard; the Retirement Confidence Hub is our game plan – a standing effort to turn evidence into action so more Australians can feel confident about their retirement, and unlock a better quality of life.
“This requires a system that is easier to understand, improved financial literacy, easier access to guidance and advice at critical life moments, and more solutions that provide lifetime income and which unlock the considerable wealth tied up in property.”

About the AMP Retirement Confidence Pulse

The Pulse is based on AMP commissioned research of 2,000 Australians by independent research company, Dynata in July 2025.

 ———–

Notes:
[1] Annual cost is $75,319 per year for a couple and $53,289 for singles, according to the latest ASFA Retirement Standard. Compared to $61,909 and $43,687 respectively for the June quarter of 2020. (Source: ASFA, 2025)

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Alexis George

Australians by 10s of thousands of dollars. The launch of AMP Rewards means AMP Super members can now earn real cashback either in-store or online across 400+ (and growing) retail brands, simply by linking their existing Visa, Mastercard or eftpos card to the program.

Members can then choose to either pocket the cashback or send it directly into their AMP Super account that could grow their balance by as much as $100,000 when they hit retirement.

Alexis George, AMP Chief Executive said: “AMP Rewards is another market-leading innovation in superannuation and retirement that gives real and practical benefits to AMP members.

“Traditional rewards programs are fiddly and points-based. We’re turning spare change into super savings which can add up to significant retirement gains through a seamless experience and the magic of compounding.”

Cashbacks can ‘snowball’ into retirement

Through the magic of compounding, even small amounts invested regularly can build meaningful retirement savings over time[1]:

• $5 a week (~$260 p.a.) for 30 years → ~$25k.
• $20 a week (~$1,040 p.a.) for 30 years → ~$98k.

Despite these significant benefits, new research[2] from AMP shows that the concept of compounding is poorly understood by Australians under the age of 40, particularly women:

• More than half under 40 don’t understand the concept of compounding
• This increases to 2 in 3 for women under 40, compared to 2 in 5 for men.

Powered by Citro

The AMP Rewards program leverages Citro’s established rewards platform and their partnerships with more than 400 of Australia’s leading retail brands, together with an existing content platform of more 800 articles, tailored for Australians over 40.

Australia’s growing use of rewards programs

Australian consumers are increasingly embracing rewards programs, with the vast majority of Australians now members of at least one loyalty or rewards program. Transparency and simplicity are cited as the top factors Australians value most in rewards programs.

More benefits for AMP Super members

This new and free offer is another way AMP is delivering for AMP Super members, having recently:

• Achieved top quartile investment returns for the year to 30 June 2025
• Launched new digital advice solutions helping members better prepare for retirement, understand and select investment options, and consider additional contributions, and
• Launched the AMP Super Lifetime feature to unlock increased income in retirement.

How AMP Rewards works:

Step 1: Download / log in: AMP Super members download the AMP Rewards app (iOS / Android) or visit amprewards.com.au and sign up.

Step 2: Link cards:  Securely link up to four existing Visa, Mastercard or eftpos cards – no need to change bank accounts.

Step 3: Shop & earn: Browse 400+ leading in-store and online brands via the AMP Rewards app or desktop experience. Eligible cashback tracks automatically to your AMP Rewards wallet.

Step 4: Cash or super: When cashback is confirmed (normally within 30 days), you can choose to have your cashback paid into your nominated bank account, or invest it into their AMP Super account[3].

Alexis George, AMP Chief Executive, continued: “We’re bringing together AMP’s strengths in super with Citro’s lifestyle and rewards platform to create something unique and genuinely beneficial – money back in our member’s pockets now and the ability to build their super.

“Our vision at AMP is to be the place Australians come to for their best possible retirement. Turning everyday spending into retirement savings is one more way we’re helping make that happen.”

Ash Frenken, Citro Managing Director, said: “We’ve designed AMP Rewards to be simple and transparent. Members earn real cashback dollars – not points – and we guarantee it to member wallets within 30 days of purchase confirmation, or we’ll pay members the advertised cashback and also give an additional $50.

“Australians shop across a wide mix of online and in-store brands and that everyday spend can now deliver real money for them to save, spend or invest into their super.

“For members over 40, AMP Rewards also unlocks Citro’s tailored money, lifestyle and retirement content – bringing together the financial and social support people tell us they want as they plan the next stage of life.”

———
Notes:
[1] Illustrative examples using Moneysmart compound interest methodology. 7% p.a. long-term return assumption, annual contributions, before fees/tax.
[2] Source: AMP commissioned research, Dynata, 2025
[3] Terms and conditions apply and available here: https://amprewards.com.au/terms

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Matt Lawler

Business services partner, Entireti, will rebrand its NewCo subsidiary to Akumin, reflecting the group’s mission to build a fresh identity and forge a new path as one of Australia’s leading non-institutional providers of licensing and business support services.

Speaking at the group’s annual adviser conference in Brisbane yesterday, Matt Lawler, Akumin Chief Executive Officer said the rebrand marked another significant milestone in its separation from AMP and also celebrated the knowledge, capability and creativity of the group’s financial advisers and their teams.

“The name Akumin is inspired by the professional judgement, discernment and acumen of the experienced people across our network,” he said.

“These qualities and strengths are critically important in financial advice but our businesses and people are also innovative and progressive so we wanted a brand that reflected all our unique attributes and would help us standout in a competitive market.”

Alexis George, AMP Chief Executive Officer said the rebrand signalled an exciting new era for the businesses within the Akumin network and the broader advice industry in Australia.

“AMP has always believed in the life-changing benefits of quality financial advice and will continue to be an advocate for the profession as we maintain our close relationship with Akumin,” she said.

The launch of Akumin follows Entireti’s recent acquisition of AMP Limited’s financial advice businesses, including AMP Financial Planning, Hillross and Charter Financial Planning, which had been temporarily operating as NewCo.

Akumin houses those offers including AMP Financial Planning, which will be rebranded to Akumin Financial Planning.

Late last year, Entireti appointed an external creative agency to help develop a new brand identity, in collaboration with the group’s employees and advisers, that encapsulated its vibrant culture, long history serving Australians and bright future.

The process involved surveys, brand workshops and one-on-one engagement, in close consultation with the group’s representative body, The Advisers Association (TAA).

From a shortlist of names, Akumin was selected by the network.

According to Neil Younger, Entireti Group Chief Executive Officer, the rebrand, just months after the completion of the AMP transaction in December, highlighted the desire of the group’s advisers and employees to move forward, under a new name, vision and strategy.

“It is really exciting to start this next chapter with a new brand, and we remain focused on supporting Akumin advisers through this transition,” he said.

“Akumin, alongside the broader Entireti business, has exciting plans to grow and expand the range of services we deliver to advice businesses.”

Representing The Advisers’ Association, Scott Montefiore, said advisers were highly engaged throughout the process, resulting in the creation of a “great brand”.

“Akumin captures the essence of our advice community and what we stand for,” he said.

“It is professional, modern and a good platform to build out a compelling licensee offering to advisers. We look forward to continuing to work together to represent, protect and enhance the interests of our members.”

In total, Entireti, which includes Fortnum Private Wealth, Personal Financial Services and Akumin, has circa 1,300 financial advisers, 400 businesses and around 180 employees.

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Paul Barrett

Professional services group, AZ NGA, and advice business services group, Entireti (formerly Fortnum Private Wealth), have entered a strategic partnership with AMP Limited (AMP) that will transform the advice industry landscape and create a compelling offer for AMP’s financial advisers.

Under the deal, AZ NGA will acquire AMP’s minority equity stakes in 16 leading AMP-aligned firms and provide ongoing support to drive efficiencies and grow their business. Entireti will acquire AMP’s financial advice businesses including AMP Financial Planning, Hillross, and Charter Financial Planning. It will also acquire licensee services provider, Jigsaw Advice Solutions. AMP will have a 30% shareholding through a new joint venture entity.

The joint venture entity will be formed between Entireti and AMP, and through this entity, Entireti will provide comprehensive licensing and business services to AMP’s self-employed and self-licensed practices. The new entity will sit under the Entireti umbrella, which includes Fortnum Private Wealth and Personal Financial Services (formerly Australian Unity Personal Financial Services).

Paul Barrett, AZ NGA Chief Executive Officer, said the transaction highlighted AZ NGA’s increasing focus on larger transactions and its ability to innovate to satisfy the needs of different stakeholders.

“This is our biggest transaction to date and we are excited to welcome 16 quality businesses that are focused on growth to our community,” he said. “This deal expands our national footprint, materially increases our exposure to the growing value of the advice margin and takes us a step closer to achieving our goal to be Australia’s leading professional services company.”

Neil Younger, Entireti Chief Executive Officer, said the transaction significantly expanded Entireti’s national network of professional advisers and strengthened its ability to enhance its value proposition to financial advisers, employees, and clients by adding material scale, resources, and expertise. Entireti will ensure a seamless transition by providing continuity of AMP management, which will also ensure the long-term success of the new entity and the broader Entireti team. A number of AMP team members will also join AZ NGA.

“We are excited to partner with AMP and applaud their commitment to a sustainable standalone advice business that can support and lead their advisers into the future,” Younger said. “We have the infrastructure, experience, and capability to help advisers efficiently deliver quality advice, increase their productivity, and grow their business. Importantly, they will be welcomed into our vibrant, collaborative advice community, which has many advantages including the sharing of ideas, experiences, and connections. We look forward to learning from each other.”

Alexis George, Chief Executive Officer, AMP Limited, said the coming together of AMP, Entireti, and AZ NGA created a strong alliance to take the AMP advice network into the future.

“AMP has been dedicated to creating a new model for our advice business to provide certainty for AMP advisers and our people. We believe this partnership achieves our goals and is the right strategic fit. Entireti and AZ NGA really understand advice businesses and what they need to succeed, and together we are aligned on the goal to support advisers to build strong healthy businesses and to help deliver financial advice to more Australians. Each of us is committed to playing a key role in reimagining advice and positively contributing to the growth and advancement of a thriving advice industry.”

The transaction is expected to be completed by the end of the calendar year. On completion, Entireti will have a network of over 1,300 financial advisers. The deal will mark AZ NGA’s 158th transaction since inception, 19th deal so far this calendar year, and second deal in collaboration with Entireti. In November 2023, Entireti and AZ NGA-backed advisory firm Nestworth Financial Strategists teamed up to acquire Australian Unity’s Financial Advice businesses including the group’s employed planner business, corporate superannuation services business, and AFSL entity, Australian Unity Personal Financial Services.

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Alexis George

Overview

• Underlying Net Profit After Tax (NPAT) up 5.4% to $118 million (1H 23: $112 million)
• AMP Bank underlying NPAT of $35 million (1H 23: $57 million), reflecting previously flagged Net Interest Margin (NIM) compression. Credit quality remains strong.
• Platforms underlying NPAT of $54 million (1H 23: $44 million), with improved net cashflows and disciplined cost management. IFA flows now 35% of inflows and are up 30%.
• Superannuation & Investments (formerly Master Trust) underlying NPAT of $34 million (1H 23: $28 million), with stable margins and ongoing reduction in outflows.
• Advice underlying NPAT loss of $15 million (1H 23: $25 million), an improvement of 40% on 1H 23. Transformational partnership for AMP Advice announced today.
• New Zealand underlying NPAT stable at $17 million.
• Statutory NPAT of $103 million (1H 23: $261 million), with the prior corresponding period reflecting the net gain of $209 million on sale of AMP Capital and SuperConcepts.
• Controllable costs down 6.4% to $339 million, on track for FY24 target.
• Capital management: Returned $963 million of $1.1 billion capital return commitment since August 2022.
• FY 24 interim dividend of 2.0 cents per share, 20% franked, declared today.
• $158 million of tranche 3 on-market share buyback completed in 1H 24.

AMP Chief Executive Alexis George said: “We have made good progress this half on our key strategic commitments, and we have positive momentum heading into the second half of the year. We have continued to deliver on simplification and cost reduction, while also driving growth in our wealth businesses and returning capital to shareholders.

“The launch of our digital small business bank is on track for Q1 25 as part of our strategy to diversify revenues and funding mix in AMP Bank. In Platforms, our ongoing focus on the IFA market is driving flows, and we continue to build momentum in our managed portfolios offer. The innovative MyNorth Lifetime retirement solution is gaining traction with IFAs and is an important differentiator in conversations with advisers about the benefits of choosing North. We have significantly strengthened the member proposition in Superannuation & Investments with strong investment returns, competitive fees, and a compelling insurance offering, and we are seeing reduced outflows and improved retention in this business.

“Controllable costs reduced 6.4% and we have good momentum that gives us confidence in our FY 24 controllable costs guidance.

“Our capital management program remains a focus and the board is pleased to declare an FY 24 interim dividend of 2.0cps, 20% franked. The tranche 3 buyback continues as we deliver on our commitment to return $1.1 billion to shareholders.

“Our announcement today of a strategic partnership for Advice continues the transformation of AMP. The partnership delivers a sustainable business model for Advice by leveraging Entireti’s proven and profitable services model and delivering this at scale. We have chosen partners who have a strong track record, deep experience and share AMP’s commitment to delivering quality advice to more Australians.”

Business unit results

AMP Bank

Underlying NPAT of $35 million (1H 23: $57 million) reflects previously flagged margin compression and a move to lower volumes, partially offset by lower costs. Net Interest Margin (NIM) was steady from 2H 23 at 1.14% (2H 23: 1.15%), reflecting the ongoing competitive residential mortgage and deposit environment, given the Term Funding Facility roll off. The tactical reduction in new loans written resulted in a residential mortgage book of $22.7 billion (1H 23: $24.3 billion). The portfolio continues to have strong credit quality, with 90+ days arrears remaining low at 0.88%.

Controllable costs reduced 14.9% through additional cost-out initiatives and reduced project spend.

The small business and consumer digital bank is on track to launch in Q1 25, to help diversify revenue and funding mix.

Platforms

Underlying NPAT increased 22.7% to $54 million (1H 23: $44 million), driven by stronger market conditions and disciplined cost control. Controllable costs increased 1.2% as cost discipline largely offset ongoing investment in North technology and distribution capability. Margins were broadly stable at 46bps (1H 23: 47bps).

Net cashflows (excluding pension payments) were $1.2 billion for the first half, up 56.5% (1H 23: $0.7 billion). North’s managed portfolios offer continues to grow, reaching $15.9 billion, and flows into AMP’s platform North from IFAs increased to 35% of total inflows. AMP’s innovative retirement solution, MyNorth Lifetime, is attracting increasing interest from aligned advisers and IFAs.

Superannuation & Investments (formerly Master Trust)

Underlying NPAT increased 21.4% to $34 million (1H 23: $28 million), with revenue margin steady at 64bps (1H 23: 63bps).

Disciplined cost management remained a focus, with controllable costs of $83 million (1H 23: $84 million).

Net cashflows (excluding pension payments) improved 52.7% for 1H 24, reflecting resilient inflows and improved outflows, as a result of a renewed focus on the member proposition. With strong investment returns (11.14% for AMP’s largest fund, the AMP MySuper 1970s super fund), competitive fees and a more attractive insurance proposition for members (updated in January 2024), the business is positioned to retain and acquire new members.

Advice

Underlying NPAT loss improved by 40% to $15 million, with a focus on controllable costs which reduced by 13.3% to $52 million.

Despite a net loss of advisers over the period, adviser exits have largely stabilized and there is renewed focus on retention and acquisition of practices. Sentiment among the adviser network remains strong, with adviser satisfaction scores at 80% as a result of improved support service levels, a sense of community and connection across the network, and improved communication and transparency from AMP. The quality of the AMP Advice network remains strong, with revenue per practice increasing by 11.6% over 1H 23.

AMP also announced today a new strategic partnership and ownership structure with Entireti Limited (Entireti) and AZ Next Generation Advisory Limited (AZ NGA) for its AMP Advice business. Entireti will acquire AMP’s financial advice licensees: Charter, Hillross, and AMP Financial Planning, as well as its self-licensed offer Jigsaw, for a total consideration of $10.2 million: 70% in cash and 30% being AMP’s equity stake in a new joint venture entity to hold the four businesses. Additionally, AMP’s equity holdings in 16 financial advice practices will be acquired by AZ NGA for a consideration of $82.2 million. The transaction is due to complete by the end of the calendar year 2024.

New Zealand Wealth Management

Underlying NPAT was stable at $17 million. AUM-based revenue was steady at $44 million. Disciplined cost control kept controllable costs stable at $17 million, despite increased inflationary pressures.

The economic environment in New Zealand remains challenging. KiwiSaver, New Zealand’s voluntary work-based retirement savings scheme, delivered positive net cashflow, though this was impacted by member outflows and slower new member growth. Net cash outflows of $27 million (1H 23: $2 million net cash inflows) were impacted by legacy products in run-off and weakness in the local platform business.

Group

Group earnings improved with NPAT (underlying) losses of $7 million in 1H 24 reduced from $9 million in 1H 23. This was predominantly driven by an improvement in Other Partnership earnings, which contributed positively at $17 million (1H 23: $10 million) as US real estate valuations within PCCP improved following a challenging FY 23. The China partnerships’ contribution of $20 million (1H 23: $25 million) reflects CLPC earnings normalizing following regulator changes impacting the 2H 23 result.

Cost-out initiatives reduced Group controllable costs by 10%, despite inflationary pressures and previously announced stranded costs. Interest expense on corporate debt improved 15.6%, reflecting the paydown of debt partially offset by increased funding costs. The reduction in investment income (down 16.7%) reflects lower capital levels given the capital returned to shareholders as part of Tranche 3 of the capital management program.

Capital and liquidity

The capital management program has resulted in $963 million returned to shareholders since August 2022.

The FY 24 interim dividend of 2.0 cents per share, 20% franked, declared today, will represent $52 million from Tranche 3. The ongoing on-market share buyback will continue to deliver the remaining $85 million, completing the $1.1 billion that was committed to in August 2022.

The continued deleveraging of the balance sheet has resulted in a $191 million reduction in senior debt during 1H 24.

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Alexis George

The AMP Foundation is delighted to announce that Alexis George, AMP’s Chief Executive Officer, has accepted the invitation to take on the role of Chair of the AMP Foundation.

Ms George has been a Director of the AMP Foundation since March 2022. She succeeds Professor Peter Shergold AC, who has been the Chair of the AMP Foundation since 2018.

The AMP Foundation is one of Australia’s oldest and largest corporate foundations helping individuals and social enterprises create positive impact.

For more than 30 years, the AMP Foundation has financially supported a wide diversity of community-based organisations that help those in need – providing over $111 million in grants since 1992.

The last 12 months saw more than $4 million granted by the AMP Foundation with almost 1000 people positively impacted, including the two 30^th anniversary grants of $1 million to Global Sisters and First Australians Capital – underlining the collective impact the AMP Foundation is making together with communities across Australia.

At the same time, it has encouraged many of those who work at AMP to donate their skills, time and money to help charities and social enterprises support disadvantaged members of the community.

AMP Foundation Chief Executive Officer Nicola Stokes welcomed Ms George’s appointment and thanked Professor Shergold for his outstanding contribution to the Foundation and the not-for-profit sector in Australia.

Nicola Stokes, AMP Foundation Chief Executive Officer said: “The AMP Foundation and AMP recognise our shared responsibility of creating sustainable social impact, with the aim of helping everyone in our community to thrive.

“We are extremely grateful to Professor Shergold for his dedication and service to the AMP Foundation as Chair over the past six years. He has been instrumental in shaping the strategic direction and impact of the Foundation, as well as championing a culture of giving and volunteering across AMP.

“His leadership saw AMP Foundation invest in Australia’s first social impact bond and help fund the establishment of Social Ventures Australia (SVA) and Centre for Social Impact (CSI), who in turn have charted a path for a strong and sustainable sector.

“I am delighted that Alexis has accepted the invitation to become the Chair of the AMP Foundation. Over the past two and a half years on the AMP Foundation Board, Alexis has proven to be a passionate and visionary leader who shares our belief in the power of philanthropy to create positive change.

“Alexis’ focus will be on the individual, the community and lifelong giving which she demonstrates in her own life by being a Lifeline counsellor for over nine years as well as her unwavering commitment to giving her time, energy and money to several important charities in the community, who are meaningful to her and her family.”

Alexis George, AMP Chief Executive Officer said: “I am honoured to accept the role of Chair of AMP Foundation, which has a proud legacy of supporting the Australian community and making a positive and meaningful difference to the lives of many Australians.

“I look forward to working with Nicola and the board to further extend and deepen the impact of the AMP Foundation and I’m excited by what more we can achieve in the years to come.”

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Alexis George

AMP welcomes the Government’s comprehensive roadmap for financial advice reform, which will expand the delivery of advice to millions more Australians. It will make a meaningful difference to the lives of many at a time when financial advice has never been needed more.

The removal of the Safe Harbour steps in favour of a principle-based approach to the Best Interests Duty will empower financial advisers, lead to new channels for the delivery of financial advice and make advice accessible to many more Australians.

We welcome the Government’s move to recognise the vital role that superannuation funds play in supporting Australians either in, or approaching, retirement. With the right frameworks and correct safeguards in place, this move will ensure more super fund members get better retirement outcomes by having access to a broad continuum of advice.

Importantly, this new tier of advice must sit cohesively within the broader advice ecosystem, including full scale face-to-face advice, new digital solutions and other, more basic educational services already provided by super funds. This will ensure there is a clear, scaled advice pathway for consumers as their needs evolve.

We also see these reforms as supporting a greater uptake of digital advice solutions by providers, and this is an area that AMP has been investing in.

We intend to work proactively with Government to ensure the implementation of these reforms is practical and workable, including the use of appropriate terminology to enshrine the term “financial adviser” as sufficiently different from the terminology of the proposed new tier of advice provider.

We will assist Government to finalise these important changes to help streamline the advice process as quickly possible, as we work to address the advice gap and support Australians facing cost of living pressures and those preparing for retirement.

Statement by Alexis George, Chief Executive.

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Alexis George

AMP has announced that an agreement has been reached to settle the class action brought on behalf of certain advice practices authorised by AMP Financial Planning Pty Limited (AMPFP) as of 8 August 2019. The proceedings challenged the validity of some of the changes made by AMPFP to its Buyer of Last Resort (BOLR) policy in August 2019.

The settlement is for a total of $100 million and is subject to the finalisation and execution of a deed of settlement and approval by the Federal Court of Australia. AMP made a provision of $50 million in its 1H 23 financial statements based on the judgment of 5 July 2023. Today’s settlement covers the class action in its entirety, including where there has been no judgment.

In reaching a settlement, AMP makes no admission of liability.

Alexis George, AMP Chief Executive said: “This is an important step forward for our Advice business and for AMP more broadly, as it allows us to put this legacy matter behind us, which has impacted relationships with our valued advisers.

“We’ve worked very hard in recent years on rebuilding the relationship with advisers and we’re looking forward to working with them in the delivery of quality financial advice, at a time when Australians need it more than ever.”

As previously committed, AMP will communicate to the market regarding the third tranche of the capital return by the end of the year, following discussions with regulators.

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Alexis George

Key points

• AMP to launch digital bank division built specifically for the transaction needs of sole traders and small business.
• AMP to work with Engine by Starling (Engine), the SaaS subsidiary of leading UK digital bank, Starling Bank Limited (Starling), allowing it to leverage:
  • Starling’s ‘Engine’ technology platform, and
  • Engine’s expertise to build the new AMP digital bank division, to be in market by 1Q 2025.
• ~$60m investment over FY24 and FY25, absorbed within current controllable cost targets.
• New digital bank division is expected to be Net Profit After Tax (NPAT) and Return on Capital (ROC) accretive for AMP Bank from 2027 onwards.
• Next step in AMP Bank strategy, to lessen funding risks in the medium term through a focus on building deposits.

Next phase of AMP Bank strategy

AMP has announced that it is progressing with the next phase of its Bank strategy with the launch of a new digital bank offer targeting the small business and consumer markets. The solution will be built in FY24 and launch in Q1 2025, operating on a separate technology platform, as a new division to AMP Bank.

AMP is working with Engine, the SaaS subsidiary of Starling Bank, a leading UK digital bank. AMP will leverage Starling’s ‘Engine’ technology platform in building the new AMP digital bank offer, under a Software as a Service agreement.

Targeting sole traders and small businesses with 1-20 employees, the new digital bank division will offer transaction and savings accounts. It will be designed to provide tailored functionality and features to help small business owners manage their finances ‘on-the-go’ from their mobile phones. Deposit balances from the sole trader and small business segment totalled nearly $220 billion as at June 2021¹. Out of 2.6 million businesses in Australia, these segments accounted for 2.5 million businesses as at June 2022².^[1]

Financials

The new digital bank division requires an investment of approximately $60 million across FY24 and FY25, which will be absorbed within current controllable cost targets and of which approximately $40m will be capitalised. This near-term cost outcome reflects the repurposing of existing Bank investment spend, as well as the positive impact of the broader ongoing business simplification program.

It is expected to be Net Profit After Tax (NPAT) and Return on Capital (ROC) accretive for AMP Bank from 2027 onwards. There is expected to be no impact on AMP’s previously announced FY24 and FY25 controllable cost targets.

This next step in the AMP Bank strategy also aims to lessen funding risks over the medium and longer term, with a focus on continuing to build a sustainable funding base.

Alexis George, AMP Chief Executive said: “This new offer builds on AMP Bank’s strengths and addresses an under-served and growing segment of the market. Importantly, it will reshape the Bank portfolio in the medium term to better position AMP for the headwinds the industry is facing when it comes to bank funding.

“In Engine by Starling, we have chosen a partner with a track record of success and will leverage their innovative technology platform, their highly successful go-to-market expertise and ways of working.

“By partnering with one of the most innovative and fastest growing digital banks we will be able to better serve Australia’s growing number of small businesses, and individuals, with their banking needs.”

Sam Everington, CEO of Engine by Starling:  “Starling Bank has proven in the UK that it’s possible to deliver a resilient and powerful digital banking platform that is valued by customers, as well as being highly scalable and operationally efficient.

“There are clear parallels between the banking markets in Australia and the UK, and we look forward to leveraging Engine’s expertise and technology for AMP customers.”

Sean O’Malley, Group Executive, AMP Bank said: “The rapidly growing Australian small business market presents a significant opportunity for AMP Bank.

“Working with Engine enables us to equip small businesses with the best digital tools to help them manage their finances efficiently and conveniently on their mobile phone whilst on the go.”

AMP Bank outlook

AMP Bank’s near-term performance will continue to be affected by current market conditions. Current market conditions indicate Net Interest Margin (NIM) of approximately 125bps for FY23, and NIM will continue to be under pressure in FY24. However, NIM is expected to be positively impacted in the medium and longer term by lower funding costs as a result of this initiative diversifying AMP Bank’s funding sources. AMP Bank growth is expected to be nominal in FY24, as we continue to manage return on capital.

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