2018 half year results
AMP today reported a profit attributable to shareholders of A$115 million and underlying profit of $495 million for the first six months of 2018. The profit attributable to shareholders, includes a provision for the cost of our advice remediation program we announced on 27 July 2018.
AMP Capital, our investment management business, and AMP Bank grew their operating earnings 2% and 20% respectively. The Australian wealth management business (superannuation, retirement and financial advice) also grew its operating earnings, up almost 6% supported by tight cost management and other revenue growth from Advice and self-managed superannuation funds (SMSFs).
Profit margins in Australian wealth protection (life insurance) remained broadly steady. However, operating earnings declined due to higher than expected claims activity particularly in total and permanent disability claims – our policies that support customers in certain circumstances where they are unable to return to work.
The half year result highlights the continuing growth of AMP’s core businesses, other than our life insurance business.
Join the live webcast on our financial results briefing at 10.00am (Sydney time) on Wednesday 8 August, 2018.
A replay of the presentation will be available shortly after the briefing.
We have announced an interim dividend of 10 cents a share.
AMP has a policy to target a full year dividend of 70-90% of underlying profit. In 2018, we expect the full year dividend will fall within this guidance, but at the lower end of the range.
The franking rate for this dividend is 50%.
Our dividend reinvestment plan (DRP) remains in place for eligible shareholders. AMP will issue shares to participants in the DRP.
The interim dividend for 2018 will be payable on 28 September 2018 and shareholders should ensure their details are updated on their shareholding by the record date of 23 August 2018.
Since the events leading up to the AGM (10 May 2018), the Board has worked on its own renewal, the appointment of a CEO, business retention and advice remediation.
We continue to work on some elements of the existing strategy while preparing for the appointment of a new CEO. Once appointed, the new CEO will be expected to develop a new strategy addressing the best business model for the future.
Meanwhile, we are restoring confidence in AMP and giving attention to the transformation of advice; progressing with a review of future options for our life insurance, mature and New Zealand businesses; and investing in further strengthening risk management and controls.