AMP Reports Positive Underlying Profit Amid Corporate Earnings Turmoil

The latest corporate earnings season has proven to be a tumultuous time for many businesses, yet amidst the chaos, AMP Limited has emerged with some commendable financial results. While the company experienced challenges, including a downturn in its stock price, its underlying profit trajectory reveals a more positive story.

Strong Underlying Profit Growth

For the year 2025, AMP reported an underlying net profit that rose almost 21% to $285 million, despite facing one-off costs related to legacy legal claims and business simplification strategies. This result came in at the top end of market expectations, underscoring the company’s solid performance in its superannuation and investment divisions. Chief Executive Alexis George emphasized the credibility of these results during an analyst conference call, defending the company's performance amid shareholder concerns.

Innovative Banking Initiatives

A particular highlight for AMP is the growth of its new digital bank, AMP Bank GO, which has garnered an impressive $310 million in deposits and over 15,000 customers within a relatively short time since its February launch. Although the bank faced challenges, including an underlying loss of $10 million, the rapid acquisition of customers indicates that AMP is on a promising growth trajectory in a competitive sector. Ms. George expressed optimism that the benefits of this new venture would manifest more significantly by 2027.

Leadership and Strategic Focus

Under Ms. George’s leadership, who will be retiring in six weeks, AMP has made substantial strides in simplifying its operations and focusing on wealth management and retirement services. This strategic redirection seems to be paying off, with improved performance noted across various business units. As the company looks forward, Ms. George assured stakeholders that 2025 will be a pivotal year for addressing legacy issues and stabilizing its portfolio.

Despite the volatility of the current earnings season, AMP's resilient underlying profit and promising growth in its banking initiatives reflect an encouraging outlook. As the company continues to adapt and evolve, it may be poised for a brighter future, reinforcing the importance of strategic focus in a challenging economic landscape.