Despite strong profit growth, the AMP Ltd (ASX: AMP) share price is down 27% after it announced its FY25 result.
AMP is a diversified financial services business that provides banking, superannuation and retirement solutions in Australia and Zealand. The company has more than one million customers and 2,300 employees.
AMP FY25 full year result
The financial services company just released its annual result for the 12 months to December 2025. Let’s take a look at some highlights in the report:
- Total assets under management (AUM) rose 9% to $161.7 billion
- Underlying net profit after tax (NPAT) grew 20.8% to $285 million
- Underlying earnings per share (EPS) jumped 25.6% to $0.113
- Statutory net profit declined 11% to $133 million
- Final dividend per share increased by $0.01 to $0.02
What happened in this report?
The business reported a mixed set of numbers across its divisions.
Platforms underlying net profit grew 9.3% to $106 million with strong net cashflow growth (of 85.2%). However, the platform margin has slightly decreased again.
Superannuation and investments saw underlying net profit growth of 14.8% to $62 million, which also saw continued improvements in cashflows (of 47.4% to an outflow of $542 million) as a result of resilient inflows and improved member retention.
AMP Bank suffered a 9.8% decline in underlying net profit to $55 million, which reflected the “costs of scaling AMP Bank GO”. Excluding GO, underlying net profit rose 6.6% to $65 million. Lending profitability (with the net interest margin (NIM)) rose slightly to 1.27%.
New Zealand wealth management underlying net profit rose 5.4% to $39 million. Cashflow in contemporary products continues to diversify and grow.
At the corporate centre, the underlying net profit contribution was $23 million, up from a loss of $13 million in FY24, thanks to the AMP’s China contributions rising 53.2% to $72 million.
Controllable costs declined 6.9% to $603 million and is in line with its FY25 commitment.
The statutory net profit declined because of the settlement of legal legacy legal matters and business simplification. It has successfully resolved two legacy class actions.
Outlook for the AMP share price
Clearly the result was not as good as investors were hoping for. The outlook has not excited investors.
The company said it expects the platforms AUM revenue margin to be between 0.40% to 0.41%.
The superannuation and investments segment is expecting the revenue margin to be between 0.60% to 0.61%.
AMP Bank is targeting $1 billion in total deposits in AMP Bank GO, with a NIM range of between 1.25% to 1.30%.
AMP’s partnerships are expected to deliver a combined approximate return on approximately 10% over the medium-term.
Controllable costs are expected to be between $630 million to $640 million, reflecting inflation of between 3% to 4% and the scaling of AMP Bank GO. A business simplification program with a $20 million investment to be completed during FY26 will be completed.
AMP is an interesting case – its underlying net profit continues to rise and that’s an important driver of the AMP share price, but I wouldn’t say it has a strong growth outlook, so there are other ASX dividend shares I’d rather buy.
