AUS
NZ
UK
CA
USA
IND
The share price of AMP Ltd (ASX:AMP) has shown a remarkable recovery since late November, recently closing at AU$1.315 and trading at AU$1.34 in early afternoon on Thursday, reflecting a 1.9% increase. This surge comes as the S&P/ASX 200 Index (ASX:XJO) is up 0.3%, following a 0.50% interest rate cut by the US Federal Reserve.
Year-to-Date Performance
Today's gains have pushed AMP's share price up an impressive 44% year-to-date and a staggering 57% since the close on November 22. The stock is now trading at fresh 52-week highs, attracting renewed interest from investors.
Factors Driving Investor Interest
AMP’s share price faced significant pressure last November due to deteriorating net interest margins (NIMs). However, it appears investors may have acted prematurely in driving the stock down. On February 14, AMP released strong full-year results for FY 2023, reporting a 6.5% year-on-year increase in underlying net profit after tax (NPAT) to AU$196 million. Additionally, the company significantly reduced its net debt by AU$337 million, while underlying earnings per share rose by 19.3% to 6.8 cents.
CEO Alexis George described 2023 as a year of progress, highlighting the successful completion of AMP Capital sales and resolution of several legacy legal matters, which have helped build investor confidence. The strong results on the announcement day led to a 10.3% jump in the share price.
Continued Positive Momentum
AMP has maintained its positive trajectory into the first half of FY 2024. In its half-year results released on August 8, total revenue for the six-month period was AU$641 million, down 4% year-on-year. However, earnings before interest and tax (EBIT) rose by 4.1% to AU$153 million, and underlying NPAT increased by 5.4% to $118 million. Notably, the Platform business saw a robust 22.7% increase in underlying profit to AU$54 million, contributing to growing investor enthusiasm.
George noted that AMP has made significant progress on its strategic commitments and is heading into the second half of the year with positive momentum. The share price surged by 13.3% on the day the half-year results were announced.
