AMP Limited (ASX:AMP) Announces FY24 Financial Results
AMP Limited (ASX:AMP) has released its financial results for the fiscal year 2024, highlighting significant performance improvements and strategic initiatives aimed at enhancing shareholder value.
Financial Performance
AMP reported an underlying NPAT of $236 million for FY24, marking a 15.1% increase compared to FY23. The company achieved a 25% rise in underlying EPS, reaching 9.0 cents per share. Total AUM grew by 10.9% to $148.4 billion, driven by strong inflows and market movements.
Cost Management
Controllable costs were reduced by 6.1% to $648 million, aligning with the company’s cost management strategies. Additionally, variable costs decreased by 7.5% to $294 million, reflecting disciplined spending across business units.
Dividend and Share Buyback
AMP declared a final dividend of 1.0 cents per share, 20% franked, contributing to a total FY24 dividend of 3.0 cents per share. Since August 2022, AMP has returned $1.1 billion in capital through share buybacks, reducing shares on issue by 22% to 2.5 billion.
Business Unit Performance
The Platforms division saw an 18.9% increase in NPAT, while Super & Investments achieved a 26.4% rise in NPAT. Conversely, AMP Bank’s underlying NPAT decreased by 22.6% to $72 million. New Zealand Wealth Management reported an 8.8% increase in NPAT, continuing its revenue diversification efforts.
Environmental and Social Governance
AMP maintained its carbon-neutral status for the 12th consecutive year and achieved a 32% reduction in scope 1 and 2 emissions from 2023, demonstrating its commitment to environmental sustainability.
Future Outlook
For FY25, AMP targets controllable costs of approximately $600 million and expects stable net interest margins for AMP Bank. The company plans to continue its business simplification program and expand its digital banking services, with a public launch scheduled for February 2025.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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