AMP reports a 33% jump in half-year profit, driven largely by robust inflows into its superannuation products and its flagship North investment platform. Shares trade up 4.8% to $2.28 in afternoon dealings, reflecting renewed confidence in the group’s turnaround. Market reaction concentrates on the momentum in these fee-generating businesses and the company’s ability to convert that into higher returns for investors.
Management outlines a clear strategy to hand more cash back to shareholders rather than chase big acquisitions. AMP announces a fresh $150 million on-market share buyback following a similar programme completed in June and lifts its half-year dividend to 3 cents, partially franked. Underlying performance is supported by strong net inflows into its wealth management arm and a doubling of revenue from partnerships with overseas pension provider China Life.
Attention pivots to the group’s banking division, which remains under pressure in a fiercely competitive lending market dominated by major banks and Macquarie. Within the banking arm, earnings slide from $30 million to $20 million in the first half, standing out as the weak spot in an otherwise upbeat result.
Analysts highlight that the broader update still looks impressive, underscored by $3.1 billion of net inflows into AMP’s platform segment. The superannuation division also posts its first positive cash flow result since 2017, signalling a potential turning point after years of outflows. Revenue growth from the China Life partnership adds another layer of diversification and rising demand from overseas pension clients.
The mixed performance across divisions sharpens AMP’s focus on where it can grow profitably and where it should stay disciplined. Strong inflows and rising platform revenue suggest the wealth and platform businesses remain the company’s engine room.
The weaker banking outcome underscores the challenges of competing with larger lenders on price and scale. Capital management moves including repeated buybacks and higher dividends show that management sees limited value in large deals and instead prioritises rewarding existing investors.
AMP is pouring tens of millions of dollars into artificial intelligence, chasing productivity gains in its North platform even as it warns about the technology’s risks.
The wealth manager links its AI push directly to the adviser experience on North, where it is already deploying tools designed to streamline everyday tasks. Management stresses that spending on AI runs into the tens of millions of dollars each year, reflecting its importance to AMP’s operating model.
Leadership emphasises caution, flagging concerns about cyber security threats and the potential for rising technology costs if projects are not tightly controlled. Within North, AMP has introduced AI-powered note-taking for financial advisers, aiming to reduce administrative work and free up capacity to serve more clients.
The tool automatically captures and structures meeting notes, which can help advisers meet compliance requirements more efficiently. AMP argues that this kind of automation supports practice growth without forcing advisers to add headcount.
A second phase branded “AI implement” is scheduled for rollout in the second half and is expected to deepen automation inside the platform. The approach reflects how major wealth platforms increasingly see AI as a differentiator rather than just a back-office upgrade.
AMP’s focus on both productivity gains and risk controls shows it aims to embed AI deeply in client-facing workflows while trying to avoid regulatory or cyber missteps. Market watchers view the North platform as central to AMP’s future, so the success of these AI initiatives could shape perceptions of the group’s long-term competitiveness.
