AMP share price rockets 10% amid 2023 earnings boost

ASX 200 investors are sending the AMP share price soaring today.

| More on:
Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.

Image source: Getty Images

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 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.

Motley Fool contributor Bernd Struben 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 Scott Phillips.

More on Earnings Results

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

Brickworks share price tumbles on disappointing half-year loss

This loss didn't stop the company from increasing its dividend again.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

New Hope share price charges higher despite profit crunch and huge dividend cut

Weaker coal prices have hit this miner's profits and dividend hard.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Liontown share price tumbles 7% on half-year results

This lithium developer's results have been released this afternoon.

Read more »

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Earnings Results

Sayona Mining share price jumps despite $32m half-year loss

The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Thursday. At the time of writing, the lithium…

Read more »