1H 21 results key points
- Improved 1H 21 performance, with recovery in economic and market conditions, and transformation strategy delivery driving 57 per cent increase in underlying earnings.
- NPAT (underlying)[1] of A$181 million (1H 20: A$115 million) reflecting higher investment income, a strong cost performance and increased earnings in AMP Bank, which benefited from the release of credit loss provisions; 1H 21 NPAT (statutory) of A$146 million (1H 20: A$203 million).
- Customer remediation file reviews complete; program fully provisioned with payments to customers accelerating in Q3 21.
- Investment income of A$57 million, predominantly from Group Office, reflects an increase of A$48 million on 1H 20, driven by improved returns on the group’s cash investments, growth in China Life Pension Company (CLPC) earnings, including first cash dividend, and contributions from Resolution Life Australasia.
- Strong capital position maintained through transformation program; A$452 million surplus capital (above target capital level).
- Board to maintain conservative approach to capital management and dividend until requirements for the demerger and future strategies are finalised; has resolved to not declare an interim 2021 dividend.
- Demerger planning on track: sale of Global Equities and Fixed Income (GEFI) business agreed and Multi-Asset Group (MAG) transfer underway; internal operational separation targeted by FY 21; demerger to complete in 1H 22.
- Significant step forward in Advice re-shape with implementation of new service model for aligned advice and conclusion of Buyer of Last Resort arrangements from the end of 2021.
- Cost reduction delivering to targets; A$169 million cumulative savings delivered since FY 19; on-track to deliver A$300 million of annual run-rate cost savings by FY 22 timeframe.
1Net profit after tax (underlying) represents shareholder attributable net profit or loss after tax excluding non-recurring revenue and expenses. NPAT (underlying) is AMP’s preferred measure of profitability as it best reflects the underlying performance of AMP’s business units.
