The AMP Ltd (ASX: AMP) share price is starting the week with a bang.
In morning trade, the financial services company's shares are up 5.5% to $1.62.
This follows the release of its second quarter update before the market open.
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AMP share price higher on Q2 update
Investors have been buying the company's shares today after it released its second quarter update and revealed a jump in Platforms cashflows.
According to the release, Platforms net cashflows increased 63.2% over the prior corresponding period to $1,565 million.
Also heading in the right direction was its Platforms Assets Under Management (AUM), which increased 5.6% quarter on quarter to $83.2 billion.
Elsewhere, Superannuation & Investments reached positive net cashflows for the quarter of $33 million. This is the first time since 2017 that this has been achieved.
Superannuation & Investments AUM was $58.5 billion, up slightly quarter on quarter driven by investment markets and resilient inflows.
Finally, AMP Bank's total loan book was managed for value at $23.5 billion, which is up from $23.3 billion in the first quarter. And AMP Bank total deposits slipped to $20.5 billion, from $20.7 billion in the first quarter. This was in line with its steady loan book.
Platforms business stands out
AMP's chief executive, Alexis George, was particularly pleased with the performance of its Platforms business. She said:
Our Platforms business has delivered another standout performance, with net cashflows up over 60% and AUM exceeding $83 billion. This reflects the strength of our platform proposition for advisers and their clients, supported by ongoing innovation – including our AI File Note tool and Lifetime retirement solutions. Our Managed Portfolio offer continues to grow rapidly, with AUM now at $21.8 billion.
George was also pleased with the achievement of positive cash flow from the Superannuation business. She adds:
In our Superannuation business we've reached a significant milestone, delivering positive net cashflows for the quarter, for the first time since 2017. This reflects our continued efforts to build a compelling member proposition which is delivering outstanding investment returns, service and education. We will continue our focus on member retention, to drive towards a sustainable positive cashflow position. This includes renewed investment to uplift our digital engagement, rolling out our digital advice offering, and the recent launch of AMP Lifetime Super to our members.
Looking ahead, Alexis George appears cautiously optimistic on AMP's outlook. She concludes:
Against the backdrop of this positive momentum, investment markets remain volatile, and we continue to see sustained competitive pressure, as well as accelerating pace of change, driven by AI. In this environment, we remain focused on the ongoing execution of our strategy.
