FY 21 results key points:
- Solid FY 21 underlying performance, despite challenging conditions, supported by earnings uplift in AMP Bank and AMP Capital performance fees; early momentum achieved on strategic priorities to build new AMP.
- NPAT (underlying)[1] up 53 per cent to A$356 million (FY 20: A$233 million), assisted by AMP Bank earnings and release of provisions, and strong AMP Capital performance fees in 2H 21 from closed-end infrastructure funds, delivering strong returns to clients.
- FY 21 NPAT (statutory) loss of A$252 million (FY 20: A$177 million profit), primarily impacted by previously announced impairment charges, mainly non-cash write-downs.
- AMP Bank NPAT increased 38 per cent to A$153 million, driven by the release of provisions; residential mortgage book growth was at 1.36x system for FY 21, accelerating to 2.1x system in Q4 21.
- Australian Wealth Management total assets under management (AUM) increased 8 per cent to A$134 billion, driven by improved investment markets and a reduction in net cash outflows. North Platform saw inflows from external financial advisers (EFA) up 18 per cent for the year to A$1.3 billion.
- Disciplined focus on costs with A$140 million in gross cost reductions achieved in FY 21 to deliver total controllable costs of A$775 million (excluding AMP Capital). Overall cost reduction initiatives delivering to target, with A$260 million cumulative gross savings since FY 19, and on-track to deliver A$300 million of annual run-rate gross cost savings by FY 22.
- Remediation program: advice file reviews complete; remediation payments to customers with AMP products made; payments to customers with external products being finalised.
- AMP Limited surplus capital at 31 December 2021 was A$383 million above target requirements to support demerger and transformation.
- In line with existing strategy to maintain conservative approach to capital management and dividend to support business transformation, no final dividend has been declared for FY 21.
- Demerger on track for 1H 22 completion: AMP Capital Private Markets (Private Markets) established as a standalone business, leadership team in place, and new brand announced – Collimate Capital.
[1] Net 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.