The AMP Ltd (ASX: AMP) share price is surging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) financial services company closed yesterday trading for $1.355. In morning trade on Thursday, shares are changing hands for $1.517 apiece, up 11.96%.
For some context, the ASX 200 is up 0.92% at this same time.
This outperformance comes following the release of AMP's third quarter (Q3 2024) update.
Read on for the highlights.
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Why is the AMP share price rocketing?
ASX 200 investors are bidding up the AMP share price after the company reported a 76% year on year increase in platforms net cashflows of $750 million.
North inflows from Independent Financial Advisers (IFAs) were up 47% from Q3 2023 to $832 million.
Also showing growth were Platforms Assets Under Management (AUM), which increased by 5% from last quarter (Q2 2024) to $78.1 billion; and Superannuation & Investments AUM increased 3% from the prior quarter to $55.8 billion, with net cash outflows down 46% year on year to $334 million.
New Zealand Wealth Management net cashflows leapt from $6 million in Q3 2023 to $40 million in the quarter just past, with AUM up 2% from Q2 2024 to $11.6 billion.
In other core financial metrics, the AMP Bank total loan book increased by $100 million quarter on quarter to $23.0 billion. Total deposits of $20.9 billion were up $300 million from the prior quarter.
What did management say?
Commenting on the results sending the AMP share price flying higher today, CEO Alexis George said:
During the quarter, AUM increased across Platforms, Superannuation & Investments and New Zealand, and net cashflows also improved across these businesses.
Platforms cashflows significantly increased on the prior period, while in Superannuation & Investments, outflows were almost halved, with a continued focus on our renewed member proposition and a new national advertising campaign for AMP Super.
George added that AMP's new partnership for its Advice business is on track, with the transaction set to be completed in 2024. "Our focus remains on a smooth transition and maintaining the strong relationships with advisers as they move to the new joint venture with Entireti."
As for the share buy buyback completed in the early days of Q4, George said:
Last week we completed the return of $1.1 billion of capital to shareholders, via on-market share buybacks and the recommencement of dividends. This is an important milestone in the transformation of AMP, as we continue to simplify and grow the business.
AMP share price snapshot
The AMP share price has been a strong performer in 2024, now up 64% year to date.
