No dividend? No worries. AMP (ASX:AMP) share price up 4% on results

The company expects its demerger to be complete in the first half of this year.

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Key points

  • AMP share price is up on open
  • Underlying profits up, statutory profits down
  • No final dividend paid

The AMP Ltd (ASX: AMP) share price is marching higher in early trade, opening up 4%.

AMP shares closed yesterday at $1.01 and are currently trading for $1.05.

Below we look at the highlights from the ASX 200 financial services company's full year financial results for 2021 (FY21).

AMP share price lifts off on profit leap

  • Underlying net profits after tax (NPAT) of $356 million, up 53% from $233 million in FY20
  • Statutory NPAT loss of $252 million, compared to a profit of $177 million in FY20
  • Surplus capital as at 31 December $383 million above target requirements to support demerger and transformation
  • No final dividend declared

What else happened during the financial year?

AMP said that conditions were challenging in 2021, but an earnings increase by AMP Bank and a lift in AMP Capital performance fees from closed-end infrastructure funds helped deliver solid underlying performance for the year.

The company said its statutory NPAT loss for FY21 was mainly due to previously announced impairment charges, which were mainly non-cash write-downs.

Management opted not to declare a final dividend, taking a conservative approach to support the AMP's business transformation. AMP last paid a final dividend in March 2019.

Other highlights included an 8% increase in total assets under management (AUM) at Australian Wealth Management. AUM stood at $134 million as at 31 December.

Addressing its remediation program, AMP reported that its advice file reviews are complete and remediation payments to customers with AMP products have been made. The payments still due to customers with external products are being finalised.

What did management say?

Commenting on the results, AMP's CEO, Alexis George said:

We have set a clear strategy to drive two simpler and more efficient businesses, well placed to compete, grow and deliver value in a highly dynamic market.

We've achieved a solid underlying profit result, which shows the strength of our Bank, growth of the North platform with increased inflows from external financial advisers, and the significant cost savings achieved from across the business, in line with our targets.

What's next?

AMP reported that its demerger of Private Markets from AMP remains on track to be completed in the first half of 2022.

Looking ahead, George said the operational separation of the 2 businesses is now complete, "including the transfer of the multi-asset group investment team into Australian Wealth Management, and the appointment of Chairman and Deputy Chairman designates to establish an independent board".

"We have also entered into a binding agreement for the sale of the Infrastructure Debt platform," he added. "Private Markets has today announced its new brand – Collimate Capital – which will be rolled out globally in the first half of 2022."

AMP share price snapshot

The AMP share price has struggled over the past 12 months, down 32%. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 6% over that same time.

So far in 2022, AMP shares have gained 5%.

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.

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