Amp Limited · ASX:AMP
Amp — Investor Presentation (February 2025)
52 slides from Amp's investor presentation, Feb 14, 2025
Slide 1: FY 24 Results
Helping people create their tomorrow FY 24 Results Alexis George, CEO Blair Vernon, CFO 14 February 2025
Slide 2: Agenda
Agenda 1 2 FY 24 overview Financial results 3 4 Costs Capital 5 6 Business unit FY 25 guidance performance and priorities 7 Summary 2
Slide 3: FY 24 overview
FY 24 overview Alexis George, CEO 3
Slide 4: FY 24 highlights
FY 24 highlights Delivering on strategic Controllable Group underlying NPAT Controllable costs priorities costs down 6.1% +15.1% -6.1% driving growth in wealth in line with guidance, businesses with improved with momentum cashflows and stabilising for 1H 25 to $236m to $648m position in AMP Bank EPS
Slide 5: FY 24 business unit execution
FY 24 business unit execution Platforms Superannuation & Investments Driving inflows and building traction in Delivered strong returns to members, innovative retirement products, as well improved cashflows and enhanced as Managed Portfolios value proposition to members AMP Bank New Zealand Wealth Ma
Slide 6: AMP's portfolio
AMP’s portfolio Positioned to be a pre-eminent retirement specialist: promoting financial confidence Operating business units Platforms Super & Investments AMP Bank NZ Wealth Management A leading provider of super, Superannuation and pension A digital-focused challenger A standalone wealth managemen
Slide 7: Australian market context
Australian market context AMP well-positioned to benefit from strong long-term trends in banking and wealth in Australia High household wealth Growing super assets Ageing population High levels of average household Compulsory superannuation Growing retirement-age population wealth, with mean househo
Slide 8: A balanced focus on broader stakeholders
A balanced focus on broader stakeholders Helping people create their tomorrow Customers People and partners Communities and environment Giving customers the confidence to Creating meaningful opportunities for Addressing the broader impacts of our take control of their finances and our employees to c
Slide 9: FY 24 financial results
FY 24 financial results Blair Vernon, CFO 9
Slide 10: FY 24 results summary
FY 24 results summary $m FY 24 FY 231 FY 24 v FY 23 Underlying NPAT up 15.1% to $236m (FY 23: $205m) Total revenue 1,252 1,266 ▼ 1.1% Variable costs (294) (318) ▼ 7.5% Total revenue was down 1.1%, with increase in Platforms offset by lower net interest income in AMP Controllable costs (648) (690) ▼
Slide 11: Statutory NPAT reconciliation
Statutory NPAT reconciliation $m FY 24 FY 23 FY 24 v FY 23 Key movements NPAT (underlying)1 236 205 ▲ 15.1% Business simplification of $43m ($61m pre-tax) reflects 12 month spend of the up to $150m Litigation and remediation related costs (8) (99) ▼ 91.9% business simplification program Transformati
Slide 12: $148.4bn of AUM
$148.4bn of AUM FY 24 closing total AUM grew $14.6bn (10.9%) to $148.4bn Platforms 15.5 $148.4bn 148.4 Closing AUM grew 12.3% to $79.8bn driven by positive net cashflows and market movements (FY 23: $71.1bn) $133.8bn 2.8 0.2 11.8 133.8 (1.0) (2.9) 45bps AUM based revenue to Average AUM 10.8 (FY 23:
Slide 13: FY 24 business unit overview
FY 24 business unit overview Superannuation Platforms & Investments AMP Bank New Zealand Group1 loss improved $107m ▲ 18.9% $67m ▲ 26.4% $72m ▼ 22.6% $37m ▲ 8.8% -$47m ▼ 27.7% NPAT v (45% of NPAT) (28% of NPAT) (31% of NPAT) (16% NPAT) (-20% of NPAT) FY 23 Strong net cashflow Improved net cashflows
Slide 14: Costs
Costs AMP3>
Slide 15: FY 24 controllable costs
FY 24 controllable costs ($m) $744m (prior Previously Controllable costs in FY 24 reduced by 6.1% to to Advice committed to $648m offsetting inflation pressure and the impact restatement) $690m for FY 24. of previously announced stranded costs Restated guidance for Advice: $660m • Employment costs d
Slide 16: FY 25 controllable cost target unchanged
FY 25 controllable cost target unchanged Targeting $600m (7.4% reduction on FY 24) Overall business simplification program • Stranded costs of ~$45m emerged from the Advice • Target controllable cost base of $600m transaction. Plans well progressed to address as part of business simplification progr
Slide 17: Capital
Capital 17
Slide 18: Capital position
Capital position Common Equity Tier 1 (CET1) is our preferred measure for reporting capital. $m FY 24 FY 23 % change It comprises shareholder equity, less: Total capital resources 4,285 4,535 ▼ 5.5% • net deferred tax assets which are anticipated to be realised against profitability in future years
Slide 19: CET1 capital movement
CET1 capital movement ($m) 1,974 236 300 1,769 CET1 surplus 139 CET1 surplus (86) 300 Target capital level $150m Statutory NPAT (244) 39 139 1,674 1,630 Total CET1 Total CET1 (106) capital capital requirements requirements FY 23 NPAT Items 2024 share 2024 dividends Net FY 24 CET1 surplus (underlying
Slide 20: Approach to capital management
Approach to capital management Capital management – future view Dividends • Manage the business’ balance sheet through the cycle FY 24 full year dividend: 3.0cps (1.0cps final, 20% franked) • Enhance shareholder returns through appropriate investments, and return • Represents a reset of our approach
Slide 21: Business unit performance and FY 25 priorities
Business unit performance and FY 25 priorities 21
Slide 22: Platforms
Platforms 22
Slide 23: Platforms FY 24 results
Platforms FY 24 results Strong net cashflow momentum with sustainable revenue and disciplined cost management leading to profitable growth $m FY 24 FY 23 FY 24 v FY 23 Underlying NPAT up 18.9% driven by increased cashflows, positive market conditions and cost discipline AUM based revenue ($m)1 338 3
Slide 24: Platforms margin
Platforms margin Platforms AUM-based revenue margin construct (bps) 47 • Revenue margins consist of administration revenue and other fees which 45 vary by segment, tiered fee structures and fee caps 24 22 • 56% of AUM generates investment-related fees (up from 52% in FY 23), driven by $5.8bn growth
Slide 25: Platforms cashflow and distribution
Platforms cashflow and distribution Total net cashflows (incl pension payments) ($m) Assets Under Management ($b) Total net cashflows are impacted by changes to minimum drawdown limits returning to pre-pandemic levels 2,756 Total Net cashflows 15.7 , 20% Superannuation (incl pension payments) Pensio
Slide 26: Market position and dynamics
Market position and dynamics Super & Pension Wrap platforms market share2 Growing market Positioned for mass affluent segment Investment Super & Pension • Total addressable super and investment • 67% of advisers remain focused on mass market is >$4.1tr1 affluent clients (i.e. with asset balances bet
Slide 27: North: Strategy
North: Strategy 2024 progress 2025 initiatives Uplifted service and digital experience for advisers Further innovation in retirement • Account management and cashflow management capabilities Continue to invest in and lead on retirement innovation with new retirement rated #1 by SuitabilityHub modell
Slide 28: Superannuation & Investments
Superannuation & Investments 28
Slide 29: S&I FY 24 results
S&I FY 24 results Stable margins, ongoing improved retention, with disciplined cost management $m FY 24 FY 23 FY 24 v FY 23 Underlying NPAT up 26.4%, driven by stronger market conditions, reduced controllable and variable costs, and a AUM based revenue ($m)1 345 343 ▲ 0.6% one-off positive impact to
Slide 30: S&I cashflow
S&I cashflow Net cashflows (excl pension payments) ($m) Continued improvement in outflows1 over time, driven by improved investment returns and increasingly compelling FY 21 FY 22 FY 23 FY 24 member proposition (1,030) (2,592) (2,124) (1,030) Previously flagged mandate loss impacted cashflows in 2H
Slide 31: Market position and dynamics
Market position and dynamics System expected to grow to Differentiation for member Customer origination: % of AMP Super AUM Investment Type: % of AMP Super AUM $13.6 trillion by 20481 acquisition and retention MySuper Choice Employer -– Corporate Corporate Choice • Super Guarantee rising to 12% • Fo
Slide 32: S&I Strategy
S&I Strategy 2024 progress 2025 initiatives Delivering strong and consistent returns Digital advice launched in January 2025 Build direct-to-consumer capabilities • Delivered investment returns >15% for 2024 for MySuper 1990s, • First phase of digital advice launched • More sales and self-service to
Slide 33: AMP Bank
AMP Bank 33
Slide 34: AMP Bank FY 24 results
AMP Bank FY 24 results Improving trends in 2H 24 compared to 1H 24. Managing volumes while developing small business and personal bank $m FY 24 FY 23 FY 24 v FY 23 Market conditions remain challenging with ongoing competition for loans and deposits Net interest income ($m) 322 373 ▼ 13.7% Fee and ot
Slide 35: AMP Bank: Net Interest Margin
AMP Bank: Net Interest Margin 1.42% 142 0.05% 5 0.03% 3 -8 -0.08% 0.04% 4 1.26% 126 -3 -17 -0.17% -0.03% FY 23 Variable rate… Variable rate Fixed rate loans Asset mix Asset mix At call and term Funding Funding mix mix Other FY FY 24 24 FY 23 loans Fixed rate loans At deposits call and… Other Impact
Slide 36: AMP Bank mortgage portfolio and arrears
AMP Bank 60% of customers ahead on mortgage repayments (% of current portfolio $) AMP Bank’s 30+ and 90+ days mortgage arrears 31-Dec-22 31-Dec-23 31-Dec-24 AMP 90+ days (%) AMP 30+ days (%) 0.40 1.85 1.72 0.35 0.30 1.60 1.31 1.29 1.36 1.35 0.25 1.10 0.20 37% 37% 36% 0.78 0.80 0.70 27% 27% 29% 0.85
Slide 37: AMP Bank: 2024 progress
AMP Bank: 2024 progress Select enhancements to existing Ongoing management of Bank proposition volumes/margins New loan origination solution for brokers: Focused on higher margin customer fast-track time to approval, improved segments including investor loans verification processes and fraud detecti
Slide 38: New digital bank launched
New digital bank launched Launched on time, on budget, and aligned to strategic challenge outlined Public launch in Feb 2025 Ongoing iteration • Delivered in 12 months with launch to AMP • Ongoing development of digital features employees in Dec 2024, on time and on and experience budget • Using dig
Slide 39: New Zealand Wealth Management
New Zealand Wealth Management 39
Slide 40: NZWM FY 24 results
NZWM FY 24 results Diversification of revenue delivering growth despite economic headwinds $m FY 24 FY 23 FY 24 v FY 23 Diversification of revenue continues with 35% of revenue from non-AUM business lines. AUM-based revenue up 3.4%, with positive AUM based revenue ($m) 91 88 ▲ 3.4% market movements
Slide 41: NZWM Market position and dynamics
NZWM Market position and dynamics New Zealand Wealth Management KiwiSaver market continues to be business consists of: the key opportunity Three wealth management businesses: KiwiSaver; • KiwiSaver market continues to grow with Corporate Superannuation; and Retail investments. 3.3m members and NZ$11
Slide 42: NZWM Strategy
NZWM Strategy 2024 progress 2025 initiatives Improved investment performance: Change in investment Enhance Retirement proposition: strategy and delivery driving above-market average returns for • Term deposits offer retention opportunity for those in retirement who would 1-3 years typically withdraw
Slide 43: Group
Group 43
Slide 44: Group FY 24 results
Group FY 24 results Strong Partnerships contribution $m FY 24 FY 23 FY 24 v FY 23 China partnerships contribution up 20.5% with CLPC earnings normalising following regulatory changes China partnerships 47 39 ▲ 20.5% impacting 2H 23 Other partnerships 32 19 ▲ 68.4% Other partnerships up 68.4% reflect
Slide 45: China Life Partnerships
China Life Partnerships China Life is the largest financial services company in China outside the big four banks. AMP has two joint ventures with China Life: CLPC and CLAMP. China Life Pension Company (CLPC) China Life Asset Management Company (CLAMP) • Pre-eminent pension company in China, one of o
Slide 46: FY 25 guidance
FY 25 guidance AMP3>
Slide 47: FY 25 guidance
FY 25 guidance Subject to market conditions Platforms FY 25 controllable costs FY 25 AUM based revenue margins Expected to be ~$600 million, predominantly expected to be ~43 bps driven by Group cost reduction Superannuation & investments Business simplification program continues FY 25 AUM based reve
Slide 48: Summary
Summary AMP3>
Slide 49: Summary
Summary Positioned to become a preeminent retirement specialist: giving Australians financial confidence in their retirement Driving flows in Platforms Executing on strategic initiatives in S&I Growing new advisers using North and building its Managed Launch of new retirement solution and digital ad
Slide 50: Q&A
Q&A 3
Slide 51: Important information
Important information This presentation has been prepared by AMP Limited (ABN 49 079 354 519) (“AMP") and is general background information about AMP and its activities current at the date of this presentation, which may be subject to change. It is information in summary form and does not purport to
Slide 52: AMP-
AMP-