AMP reports ‘strong recovery’ in profit

In a statement on the ASX, AMP chief executive Craig Meller said the business had “met its targets” to reduce costs and drive new revenue from its advice and SMSF arms throughout the year, contributing to the business’ $1.04 billion profit for the year.

“In 2017, we delivered a strong recovery in underlying profits and solid operating performances across the business,” he said.

The company’s wealth management arm saw net cash flows increase by 177 per cent, the statement said, which it attributed to “significant inflows from discretionary super contributions” ahead of changes to non-concessional contribution caps on 1 July 2017.

“Australian wealth management delivered a resilient performance during a period of high margin compression due to final transitions to MySuper,” the statement said.

“Operating earnings were 2.5 per cent lower at $391 million. However, strong growth in net cash flows and 10 per cent growth in other revenue from advice and SMSF demonstrates the underlying growth trajectory of the business.”

Mr Meller added that AMP had also made progress in its goals-based advice implementation.

“In wealth management, we’ve delivered the next phase of our Goals 360 advice platform – the goals modelling engine – enabling advisers to show customers the achievability of their goals during the advice session. It takes the financial planning process to the next level,” he said.