August has been a good month for the AMP (ASX:AMP) share price

Shares in the Aussie wealth manager have climbed higher in August.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AMP Ltd (ASX: AMP) share price has been quietly climbing higher in August. Shares in the Aussie wealth manager are up 2.8% in the past month, having hit as high as $1.16 on 13 August.

Those numbers may not seem like much to investors, but 2021 has been a tough year for AMP. The AMP share price has slumped 28.9% lower in 2021 and remains down 78.8% in the last 5 years.

Here's why August has been a good month for AMP and its shareholders.

A boy looks up and points his fingers to the sky in celebration pose.

Image source: Getty Images

What's been boosting the AMP share price in August?

Perhaps the most obvious place to start is AMP's full-year earnings result. For those who missed it, AMP reported a 57% increase in net profit after tax to $181 million. Group assets under management climbed 8% to $121.0 billion in what was good news for investors.

Controllable costs (ex AMP Capital) fell 6% to $387 million as AMP reported surplus capital of $452 million – above target requirements.

The news helped boost the AMP share price even as the wealth manager declined to pay an interim dividend. New CEO Alexis George has her sights set on the AMP Capital Private Markets demerger in the first half of FY22.

Shares in the Aussie wealth manager have been up and down in August but have managed to make incremental gains in recent weeks. That has also been helped by a broadly positive ASX earnings season including solid results from other investment management firms.

Investors appear positive enough about AMP's relative performance with the company holding onto recent gains as we near the end of the month.

Foolish takeaway

Prior to the company's earnings, the AMP share price was languishing just shy of an all-time low. While recent gains have not been monumental, they have helped boost AMP's market capitalisation to over $3.5 billion.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Financial Shares

This beaten-down ASX financial stock could deliver returns of better than 80%

Canaccord Genuity says there's plenty of upside for this stock.

Read more »

two people sitting at a desk look on in dismay as a colleague holds a chart with diminishing green bars topped with a jagged red line representing a stock market crash.
Financial Shares

Down 55%! Can this ASX financial stock stage a major comeback?

Some brokers see upside well above 180%!

Read more »

A young couple sits at their kitchen table looking at documents with a laptop open in front of them.
Financial Shares

AMP jumps on $150 million buyback and CEO handover. Is this beaten-down ASX stock turning a corner?

Investors are cheering AMP’s buyback plan as Blair Vernon officially takes charge.

Read more »

A woman smiles at the outlook she sees through binoculars.
Financial Shares

How much could the Macquarie share price rise in the next year?

This financial giant could deliver big returns.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

AMP shares charge higher on Monday despite market selloff: What's going on?

What has this financial services company announced? Let's find out.

Read more »

CEO of a company talking.
Financial Shares

Suncorp shares slip as CEO steps aside

Suncorp shares slip after its CEO takes short-term medical leave.

Read more »

A young man working from home sits at his home office desk holding a cup of tea and looking out the window.
Financial Shares

Why is the Magellan share price down 6% today?

The investment manager issued an update regarding the proposed Barrenjoey merger today.

Read more »

Worried woman calculating domestic bills.
Mergers & Acquisitions

Challenger jumps 4%, Pepper Money sinks as takeover collapses

Bid rejected, premium gone. Here's why one stock fell while the other rallied

Read more »