Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Why Did AMP Limited’s Profit Rise 114%?

AMP Limited (ASX:AMP) released its annual report to the ASX, revealing a 347% rise in profit.

On Thursday, AMP Limited (ASX: AMP) released its 2017 annual results to the ASX, revealing a 347% rise in statutory profit and 114% on an underlying basis. 

AMP is the $14.7 billion wealth management business best known for its financial advice network. AMP is divided into six various financial businesses, ranging from Australian wealth management to banking and insurance.

This morning, AMP released its annual report to the ASX. Here are some financial highlights from AMP’s announcement:

  • Revenue of $18.4 billion, up 24% compared to a year earlier
  • Profit of $848 million, up 347%
  • Underlying profit up 114%
  • A final dividend of 14.5 cents per share, payable March 28

According to its ASX filing, AMP’s largest unit by profit is its Australian Wealth Management business. It reported a profit of $391 million for the half, compared to $401 million last year. AMP said the fall in profit was a result of lower fees earned inside Superannuation, as Australians transition to MySuper products, as well as a reset in fee agreements with AMP Capital.

AMP Capital, which provides investment management services, upped its profit to $156 million, from $144 million. Money flowing into AMP Capital was driven by demand for fixed income (a.k.a. bonds), infrastructure and real estate asset classes.

AMP Australian Wealth Protection reported a profit of $110 million, up from a $415 million loss a year earlier.

amp annual report profit
Source: AMP Financial 2017 results announcement, ASX Filing, February 8th

“AMP is positioned to take advantage of positive long-term demographic and market trends, operating in large and growing markets where competition is rational and where AMP has a distinct competitive advantage.” – AMP

AMP said it is focused on four distinct strategies going forward, including:

  • Tilting investment towards its higher growth businesses
  • Making the business more customer-centric
  • Managing costs, and
  • Expanding internationally

“AMP is expanding internationally, primarily through AMP Capital, in high-growth regions where its expertise and capabilities are in demand.”

AMP has built partnerships with companies in China and Japan, where there is high demand for its investment and wealth management expertise.

Looking ahead, AMP is targeting a dividend payout ratio between 70% and 90% of underlying profit.

Join Rask’s Investor Club Newsletter Today

You can join Rask’s FREE investor’s club newsletter today for all of the latest news and education on investing. Join today – it doesn’t cost a thing. BUT, you’ll need a good sense of humour and a willingness to learn.

Join today.

Keep Reading


Disclaimer: This article contains general information only. It is no substitute for licenced financial advice and should not be relied upon. By using our website you agree to our Disclaimer & Terms of Use and Privacy Policy.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content