The AMP Ltd (ASX: AMP) share price is soaring today.
Shares in the S&P/ASX 200 Index (ASX: XJO) financial stock closed yesterday trading for 97 cents. At the time of writing on Wednesday morning, shares are swapping hands for $1.07 apiece, up 10.3%.
For some context, the ASX 200 is down 1.4% at this same time.
This comes following the release of AMP's full-year results for 2023.
Read on for the highlights.
AMP share price soars on earnings beat
- Underlying net profit after tax (NPAT) of $196 million, up 6.5% from $184 million in 2022
- Statutory NPAT of $265 million, down from $387 million year on year
- Net debt reduced by $337 million
- Underlying earnings per share of 6.8 cents, up 19.3% from the prior year
- Final dividend of 2.0 cents 20% franked, down from 2.5 cents per share in 2022
What else happened with AMP during the year?
The AMP share price is flying higher today, spurred in part by AMP's Platforms segment, where NPAT jumped 38.5% year on year to $90 million. The company said this was driven by positive North Guarantee movement from favourable market conditions.
Its AMP Bank segment went the other way, with NPAT falling to 9.7% from 2022 to $93 million in 2023. This reflected net interest margin (NIM) compression and growth moderation, which the company has previously addressed.
The Advice segment booked an underlying NPAT loss of $47 million, an improvement of 30.9% year on year.
And the group underlying NPAT loss of $27 million compared to a loss of $1 million in 2022. This was partly due to lower strategic partnership earnings and regulatory changes impacting its China partnership earnings.
Another core metric that could be boosting the AMP share price was the return of $750 million of capital to shareholders since August 2022, with more capital returns on the horizon.
The year also saw the sale of AMP Capital and SuperConcepts, as well as the resolution of legacy legal issues, including the shareholder class action and the agreement to settle an adviser class action.
What did management say?
Commenting on the results sending the AMP share price soaring today, CEO Alexis George said:
2023 was a year of progress for AMP. We have repositioned the portfolio with the completion of the AMP Capital sales, built momentum in our cost-out program, and resolved a number of significant legacy legal matters.
In addition, we have continued to reduce net debt, implemented further business simplification initiatives, invested in sustainable growth and returned surplus capital to shareholders.
George added:
The simplification program and investment we've undertaken across the portfolio is delivering positive outcomes for our customers and provides a foundation for sustainable growth…
We have a strong balance sheet and remain focused on optimising capital – including returning surplus capital to shareholders where possible.
What's next for AMP?
Looking at what might impact the AMP share price in the year ahead, the company flagged momentum in its cost reduction program targeting a $120 million reduction in AMP's cost base by the end of 2025.
There's also the $350 million tranche 3 capital return. Management said this will progress with a combination of the final dividend (totalling $55 million) alongside further dividends and/or an on-market share buyback of up to $295 million.
The company also noted it was "well-positioned to benefit from the long-term trends in banking and wealth in Australia". Those trends include the super guarantee increase to 12% in July 2025.
AMP share price snapshot
Despite today's big lift, the AMP share price remains down 19% since this time last year.
Shares are up 26% since 22 November.
