Shares in AMP Ltd (ASX: AMP) spiked sharply in early trade after the company provided a positive earnings update for the first half.
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AMP's first half will trounce last year's result
The financial services company said in a statement to the ASX that it expected underlying net profit to come in at $170 to $180 million.
This compares to $131 million for the same period last year.
There were several reasons for the upgrade, including a stronger contribution from AMP's China business, a favourable investment income contribution, and a one-off contribution from the partial sale of assets in a legacy fund.
On the latter, AMP had this to say:
As disclosed on 12 February 2026, AMP's right to receive carried interest in a legacy fund in which DigitalBridge had sold a 51% interest in remaining assets was subject to certain conditions, including sale of the remaining interest in those assets and regulatory approvals. Further to that announcement, DigitalBridge has chosen to pay a portion of the carried interest to AMP, associated with the sale of the 51% interest, prior to the sale of the remaining interest in the assets. The other sale conditions have been satisfied.
The sale netted AMP about $13 million, and the company said there was the possibility of further payments in the future.
AMP said:
There remains the potential to realise additional carried interest from the sale of the remaining 49% interest in the assets. Entitlement to any further carried interest is subject to conditions, is uncertain and cannot be determined until the sale of the remaining interest.
AMP also said it would recognise a negative revaluation of $12 million in sponsor investments.
AMP shares trading strongly
AMP shares traded as high as $1.89 on the news before settling back to be 2% higher at $1.76.
Over a one-year period, the stock is up 17.8%.
AMP also recently completed its $150 million share buyback, which bought back about 99 million shares at an average price of $1.52.
AMP chair Blair Vernon said re the buyback:
The completion of this Buyback reflects our disciplined approach to capital management, while maintaining a strong and resilient balance sheet. As we focus on driving momentum in our wealth businesses and delivering strong cash generation, we remain committed to returning surplus capital to shareholders.
AMP will announce its half-year results on August 6.
The company is valued at $4.21 billion and is currently paying a 20% franked dividend yield of 2.31%.
