AMP Limited (ASX:AMP) shares gain on robust 1QFY22 financial results

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AMP Limited (ASX:AMP) shares gain on robust 1QFY22 financial results

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AMP Limited (ASX:AMP) shares
Image source: © Island26 | Megapixl.com

Highlights:

  • AMP provides superannuation, life insurance, pensions and other financial services in New Zealand and Australia.
  • The company shared its results for the first quarter of financial year 2022 today.
  • On the back of the news, AMP’s shares were trading 1.68% higher at AU$1.21 apiece.

AMP Limited (ASX:AMP) has shared its results for the first quarter of the financial year 2022 today (5 May 2022) on ASX.

On the back of the news, the company's shares were trading 1.68% higher at AU$1.21 apiece at the time of writing this article.

AMP provides superannuation, life insurance, pensions and other financial services in New Zealand and Australia.

A look at the 1QFY22 results

  • In a highly competitive market, AMP Bank grew at double the rate of the system, with its total loan books expanding by AU$0.5 billion to AU$22.6 billion in Q1 22.
  • North inflows from external financial advisers (EFA) increased by 53% in Q1 21 to AU$342 million.
  • AWM's assets under management (AUM) fell to AU$136.5 billion in Q1 22 (Q4 21: AU$136.5 billion).
  • Lower investment markets and net cash outflows resulted in a net cash outflow of AU$142.3 billion.
  • AMP Capital's AUM fell 0.6% to AU$52.5 billion on a normalised basis from the previous quarter.
  • Client redemptions from China Life AMP Asset Management were AU$52.8 billion in Q4 21.

Also Read: RHC, GNC, AMP: Why these 3 ASX 200 stocks were April’s best performers

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AMP Capital results

The sale of the Global Equities and Fixed Income (GEFI) business to Macquarie Asset Management, the sale of the infrastructure debt platform to Ares and the transfer of the Multi-Asset Group (MAG) to Australian Wealth Management, all of which were completed in Q1 22, contributed to AMP Capital's AUM of AU$52.5 billion (Q4 21: AU$177.8 billion). These trades resulted in a total of AU$125.0 billion in AMP Capital AUM being moved during Q1 22.

The company's AUM fell 0.6% to AU$52.5 billion from AU$52.8 billion in Q4 21 on a normalised basis. While its net cash outflows of AU$1.0 billion reflect asset divestments in closed-end infrastructure equity funds, which delivered a strong performance for fund investors.

Source: © Bagwold | Megapixl.com

About AMP

AMP Bank, Australian wealth management (AWM), New Zealand wealth management, and AMP Capital are the AMP's four divisions. The company operates under three business divisions: residential mortgages, deposits, and transaction banking. The company's shares have grown around 19% YTD.

Bottomline

AMP is on track for a strong and sustainable future, with a clear strategy to build AMP Bank and its wealth management businesses in Australia and New Zealand after the company announced to divest its worldwide infrastructure equity business last week.

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