AMP (ASX:AMP) executives used the company’s full-year 2025 results call to defend what CEO Alexis George described as a “credible set of results” despite a negative market reaction, pointing to profit growth, an improved balance sheet, and progress resolving legacy matters.
George said AMP is positioned to enter “the next era” focused on growth in retirement-related services after several years of portfolio simplification, balance sheet strengthening, and cost reductions. She highlighted that AMP has returned AUD 1.1 billion of capital to shareholders over the past five years and has recommenced dividends, while also restoring reputation “to the highest level since 2008.”
FY25 results: profit growth, lower costs, higher cash flows
AMP also declared a final dividend of AUD 0.02 per share at 20% franking, bringing FY25 dividends to AUD 0.04 per share. Vernon said AMP anticipates consistency in this dividend approach through FY26 and FY27 due to limited franking credits, adding that if additional capital is returned, AMP’s preferred method would be an on-market buyback “in the absence of a compelling alternative use of capital.”
Litigation and remediation costs totaled AUD 95 million in FY25, which Vernon said reflected progress in resolving legacy class action matters and recoveries against prior remediation programs. Business simplification expenses were AUD 50 million post-tax, resulting in a strategy impact result of AUD 133 million.
Total AUM increased 9% to AUD 161.7 billion, with Vernon highlighting the sharp improvement in platforms net cash flows. Group CET1 capital increased 4.5% while the capital requirement fell more than 4%, leaving a CET1 surplus capital position of AUD 287 million at year-end, or AUD 236 million on a pro forma basis after the final dividend.
Platforms momentum continues, but margins pressured by mix
Platforms underlying NPAT rose more than 9% to AUD 106 million. Average AUM increased nearly 11%, and net cash flows climbed more than 85% to AUD 5.1 billion. Cost-to-income fell more than 3%, while margins contracted by two basis points on a net AUM basis (three basis points gross), which management attributed in part to mix shift from managed funds to managed portfolios and the impact of tiered fee structures and fee caps.
During Q&A, AMP executives said they are examining levers to support margins, including using AMP’s internal investment management capability and reviewing trustee-related settings, while emphasizing the need to meet best interest duty requirements. George said the platform space remains competitive but indicated she was not seeing heightened pressure from “headline price” competition.
Management also discussed advisor growth as an important driver of platform flows. George said AMP defines an “active” advisor as having more than AUD 1 million in assets under advice, and added that AMP typically sees meaningful flows from new advisors around 12 months after engagement. Vernon said managed portfolios remain profitable for AMP and are viewed as a key tool for improving advisor efficiency, enabling advisors to manage more clients in a market where “advisors are in short supply.”
Super & Investments: improved outflows, ambition for positive flows in FY26
In the Super & Investments (S&I) unit, NPAT increased nearly 15% to AUD 62 million, driven mainly by average AUM growth of 7.7%. Net cash outflows nearly halved to AUD 542 million. AMP’s cost-to-income ratio improved by almost 5% (reflecting previously disclosed cost allocation rebasing), while net margins were steady at 48 basis points.
Vernon said gross margin slipped one basis point, but was offset by reduced IMEs, resulting in net margin stability. Management said fee caps and AUM growth per client continued to affect margins. On the call, AMP reiterated its ambition to reach positive net cash flows in S&I in FY26, while noting the challenge of achieving that goal.
George also highlighted continued expansion of digital advice journeys, saying more than 30,000 users have gone through the journeys, and pointed to the launch of Lifetime Boost (with an income stream portion expected in the first half of the current year) and an AMP Rewards program.
Bank: margin over volume, Go deposits targeted at AUD 1 billion
AMP Bank’s combined underlying NPAT was AUD 55 million. Net interest margin improved by two basis points year-on-year, while mortgage book growth was 3.8%, below system growth, consistent with AMP’s “margin over volume” strategy. George said loan growth expectations remain “quite flat.”
However, return on capital for the combined bank was down 40 basis points due to AMP Bank Go delivery and scaling costs. Management emphasized return on capital as the primary success measure, with Vernon noting immediate focus is also on reducing the capital deployed against the bank through balance sheet management and risk-weighted asset reduction to release capital back to the group.
AMP Bank Go, launched in February 2025, reached AUD 310 million in deposits, with George saying transaction account and customer numbers exceeded expectations. Vernon set a FY26 target of AUD 1 billion in AMP Bank Go deposits, describing it as a scaling “proof point,” while adding that the NIM benefit is expected to be more meaningful in FY27. AMP guided to FY26 NIM of 125–130 basis points.
Vernon also cited funding mix changes during FY25, including increased securitization, running off rate-sensitive term deposits, and a one-off NIM impact of about two to three basis points tied to replacing an AT1 instrument with Tier 2 capital. Credit metrics were described as positive, with improvements in arrears rates and nominal bad debts. AMP noted 64% of borrowers were more than one month ahead on repayments, up from 60% in FY24.
Partnerships and legacy matters: China strength, class actions progressing
AMP’s group result was influenced by cost rebasing and partnership performance. Vernon said partnership performance improved more than 15%, led by a more than 53% increase in China partnerships to AUD 72 million. Management said there were no one-offs behind the strong China result, attributing it to growth in China’s Pillar Two segment and the emerging Pillar Three opportunity, and reiterated expectations for 10% growth “through the cycle.”
AMP highlighted China Life Pension Company’s position in China’s pension market, including an increased dividend payout ratio of 35%. AMP also said China Life AMP Asset Management paid its first dividend in 2025, calling it a milestone, while noting its U.S. property fund exposure is not considered core and divestment options will be explored “at the appropriate time.”
On legacy issues, George said AMP had reached settlement agreements on all four class actions tied to the Royal Commission, with court processes and payments still to be completed, which she expects during 2026. She also noted one new class action emerged in 2025, with limited expected progress “for some time,” measured in years.
Looking ahead, AMP guided to FY26 controllable costs of AUD 630–640 million and said its business simplification program is expected to complete during FY26 with a further AUD 20 million of investment. AMP’s FY26 platform margin guidance was 40–41 basis points, and S&I margin guidance was 60–61 basis points, subject to market conditions.
About AMP (ASX:AMP)
AMP Limited provides banking, super, retirement, and advice services in Australia and New Zealand. It operates through AMP Bank, Platform, Master Trust, Advice, and New Zealand Wealth Management (NZWM) segments. The company provides superannuation, retirement, and investment solutions; pension solutions; and SignatureSuper, a retail master trust. It also offers financial advice and wealth solutions, including retirement planning, investments, and financing; and home loans, deposit, and transaction accounts.
