AMP: A high-growth financial ASX stock

AMP Limited (ASX: AMP)

Announced on 6 August 2026 its half-yearly results for the period ended June 2026, with a strong result as AUM increased to $167.6B, reflecting the momentum in AMP’s wealth and retirement business. Total revenue for the half-year was announced to be $671M, up 6.2% YoY. AUM-based revenue increased 4.8% to $412M, the largest part of the revenue mix, and partnership revenue grew significantly by 70.3% YoY to $63M, the fastest-growing revenue segment for the company.

AMP's underlying NPAT up 33% to $174M and statutory NPAT up 57% to $154M. Strength in the partnership & group and platforms segments has driven strong profitability growth. Operating Profit (EBIT) increase 15.7% to $206M with an EBIT margin of 30.7% and gross profit increased 8.3% to $521M. This demonstrates high operating leverage as operating profits and the net profit are growing faster than the revenues, which indicates operational and cost efficiency and makes it a much more stable company.

AMP has delivered a strong cash flow performance primarily driven by strong client inflow across its wealth businesses. The platforms' net cash flow increased by 33% YoY to $3.1B, and Superannuation & Investments delivered its first positive half-year net cash flow result since 2017 of $76m. New Zealand's wealth cash flow also surged by 19.6% to $116M, reflecting improved customer retention.

AMP generated a strong surplus capital of $236M, out of which an $89M surplus comes from bank capital management initiatives. The company will return $201M to shareholders through dividends and buybacks, with an additional $150M on-market share buyback and a partially franked interim dividend of 3 cents per share.

The company has reported a strong balance sheet with shareholder equity reaching $3.5B and corporate debt remaining at $475M, highlighting disciplined capital allocation and a stable capital structure. The return on equity (ROE) increased to 9.8%, statutory ROE stood at 8.7%, and the cost-to-income ratio improved to 60.5%, strengthening the operational efficiency of the company. AMP also reported the Platforms business generated a return on tangible equity of 32.9%, being the outperformer in this half-yearly result.

Outlook

AMP is quite positive for FY26, as the management said to keep the same operational momentum by maintaining disciplined execution across its businesses. The management has guidance that platform AUM-based revenue margins are expected to be 40-41 bps for FY26. The superannuation & investment margins of 60-61 bps and AMP net interest margin of around 1.25% with a target total deposit of $2B.

The partnerships (China and non-strategic) are anticipated to generate a combined annualized return on investment of 12-15%. AMP expects its FY26 controllable costs to be in a range of $630-$640M. The management said the final dividend is subject to the board review for FY26.

Conclusion

AMP has delivered a strong first half of FY26, led by strong customer retention and revenue growth, with the Platforms segment being the outperformer compared to other segments. This makes it one of the revenue growth drivers in the future. These results showcase the company’s strong revenue and cash flow generation, with cost efficiency and disciplined capital allocation, making it a strong long-term investment case.

(Source: Company Announcements)