AMP Shares Plunge 13% Following Dividend Cut and Lower Statutory Profit

2 min read | February 14, 2025 11:42 AM AEDT | By Team Kalkine Media

AMP Shares Plunge 13% Following Dividend Cut and Lower Statutory Profit — Image source: shutterstock

Mixed Financial Results

AMP posted a 15.1% year-over-year increase in underlying net profit after tax (NPAT) to $236 million, driven by solid performances across key segments:

Platforms NPAT: Up 18.9% to $107 million.
Superannuation & Investments NPAT: Up 26.4% to $67 million.
New Zealand Wealth Management NPAT: Up 8.8% to $37 million.
AMP Bank NPAT: Down 22.6% to $72 million.

Despite this, statutory NPAT plunged 43.4% to $150 million. Management attributed this decline to restructuring costs and losses from the sale of its Advice business, completed in December 2024. Additionally, the previous year’s profits were bolstered by gains from selling AMP Capital and SuperConcepts, making the 2024 figures appear lower by comparison.

Dividend Reduction Hits Investor Sentiment

One of the biggest concerns for investors was AMP’s dividend cut. The company declared a final dividend of 1.0 cent per share (20% franked), down from 2.0 cents last year. This brought the full-year dividend payout to 3.0 cents per share, a 33% decline from the 4.5 cents paid in 2023.

Cost Control and Strategic Outlook

On a positive note, AMP reduced controllable costs by 6.1% to $648 million, meeting its 2024 cost-cutting targets. Underlying earnings per share (EPS) also rose by 25% to 9.0 cents per share.

CEO Alexis George remained optimistic despite the market reaction, stating, “2024 was another year of strategic delivery for AMP as we build positive performance momentum and focus firmly on growth.”

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