AMP announces FY 21 results

FY 21 results highlights

• 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.

AMP Chief Executive Alexis George said:

“We have set a clear strategy to drive two simpler and more efficient businesses, well placed to compete, grow and deliver value in a highly dynamic market."

We’ve achieved a solid underlying profit result, which shows the strength of our Bank, growth of the North platform with increased inflows from external financial advisers, and the significant cost savings achieved from across the business, in line with our targets.

“Bank is delivering mortgage lending growth above system, benefiting from our investment in service and support, with further digitisation and automation planned.

“There are positive signs in our Platform business with North AUM growth from stronger market performance and higher inflows from the EFA channel, which is a key focus of our strategy and is being supported by ongoing enhancements to investment choice and functionality, and competitive pricing.

“In our Private Markets business we have delivered strong performance in infrastructure funds for clients, contributing to its uplift in earnings as performance fees were realised.

“Significant progress has been made on the demerger of Private Markets from AMP, and we’re on track for completion in the first half of this year. Operational separation is now complete, including the transfer of the multi-asset group investment team into Australian Wealth Management, and the appointment of Chairman and Deputy Chairman designates to establish an independent board. We have also entered into a binding agreement for the sale of the Infrastructure Debt platform. Private Markets has today announced its new brand – Collimate Capital – which will be rolled out globally in the first half of 2022.

“We have good momentum in the transformation of AMP, repositioning our core capabilities to take advantage of the opportunities ahead of us, as we progress towards and beyond demerger as a simpler and purpose-led business.”

Business unit results

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