AMP super holds firm as flows turn positive

AMP has reported a stable half-year result in superannuation, with improving cash flows and solid support from platforms and banking. 

AMP has delivered a steady first-half 2025 performance in its superannuation and investments business, maintaining underlying NPAT at $34 million, as the group begins to see early signs of cash flow recovery.

The superannuation and investments division reported net cash outflows of $75 million, a significant improvement from the $470 million outflow in the prior corresponding period.

Notably, the business has recorded its first positive quarterly net cash flow since the second quarter of 2017, reaching $33 million in 2Q25.

CEO Alexis George said the uplift reflected traction in AMP’s strategy and improvements across wealth segments.

“Our cashflow trends are particularly encouraging, reflecting greater North flows from existing and new advisers, and improvements in flows for the S&I business,” George said. “These positive cashflows, together with favourable market movements, have driven an increase in AUM to $153.9 billion.”

The results further revealed a slight compression in revenue margins to 62 basis points, in line with AMP’s expectations, while reflecting fee caps and strong AUM growth.

Controllable costs fell 1.2 per cent, while variable costs rose 7 per cent due to increased member activity and growth initiatives.

George attributed strong member retention and a competitive insurance offering as contributors to the improved outcome.

“We are scaling innovative new solutions that reinforce our leadership position in retirement,” she added. “We’ve seen ongoing growth in AUM in our MyNorth Lifetime retirement solution, and we’ve created a version of this, Lifetime Super, which is now accessible to 140,000 AMP Super members.

“We are now also beginning to leverage these insights and innovations for the solutions in our New Zealand business. Retirement is the space where we want to focus, and we will continue to innovate in terms of customer solutions and education.”

Meanwhile, AMP’s platforms business has posted stronger growth, with underlying NPAT up 7.4 per cent to $58 million.

Net cash flows excluding pension payments have nearly doubled to $2.3 billion, led by continued growth in Managed Portfolios, now at $21.8 billion.

During the half, AMP’s North platform signed 34 new distribution agreements and added 25 net new advisers with more than $1 million in FUA.

“We are building on the strong cashflow momentum in our wealth businesses,” George said, adding that North continues to attract advisers through its ongoing product development and retirement innovation.

Platform margins held steady at 43 bps, with growth in managed portfolios helping offset compression from tiered fee structures.

On the banking side, AMP Bank reported underlying NPAT of $36 million, up 2.9 per cent. Net interest margin has lifted to 1.30 per cent, helped by repricing and a shift to higher-margin lending.

The bank’s residential mortgage book expanded by $300 million over the half, while credit quality remains strong, with mortgage arrears at 0.88 per cent.

George highlighted the contribution of AMP’s digital banking strategy.

“With our digital challenger bank, we remain focused on growth and those smaller segments that offer margin opportunity,” she said. “Since the launch of AMP Bank GO in February, we have delivered a series of new features and functionality to drive take up from both personal banking and the under-served market of mini businesses.”

AMP Bank GO has reached $123 million in transactional balances and attracted approximately 7,500 customers as at 30 June.

The group has declared a 1H 2025 dividend of 2.0¢ per share, 20 per cent franked, consistent with prior guidance.