AMP banks on new strategies

Company News

by Finance News Network

AMP Limited (ASX:AMP) continues to face significant challenges as it navigates a volatile financial environment. The company reported a $103m net profit for the first half of 2024, down sharply from $261m in 2023. A key factor behind the decline was compression in the Net Interest Margin (NIM), which saw profits drop by 38.6% year-on-year. The bank has focused on maintaining margins in a fiercely competitive lending market, resulting in stable loan books but underwhelming financial performance.

On the brighter side, AMP's platform business saw growth, with net cashflows increasing by 76% in Q3 2024 compared to the same period in 2023. The company's North platform continues to attract independent financial advisers, contributing to a rise in assets under management to $78.1bn.

AMP CEO Alexis George expressed cautious optimism: “While the market remains tough, our focus on careful margin management and the upcoming launch of our digital bank puts us in a strong position to diversify our offerings.” However, challenges in superannuation and corporate investments remain, with continued outflows from superannuation products.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?