Profit up for AMP's NZ financial services

  • 20/08/2014

By Paul McBeth

AMP's New Zealand financial services unit lifted first-half earnings as it increased KiwiSaver cashflows and boosted funds under management, while improving its margins.

Operating profit rose 5 percent to $59.4 million in the six months to June 30 from the same period a year earlier.

A strong New Zealand dollar fattened the return to the Australian parent, delivering earnings of A$55 million (NZ$60.7 million) from A$46 million, AMP said.

The New Zealand business trimmed controllable costs by $8m to $45m, while increasing assets under management 6 percent to $13.5 billion led by growth in KiwiSaver funds.

"In a highly competitive market, the New Zealand business has had a strong start to the year which has been driven by our continued focus on controllable costs and an increase in assets under management," New Zealand managing director Jack Regan said.

He said cost savings had come from the streamlining of duplicate wealth management product sets, including the 2013 merger of the AMP and former Axa KiwiSaver schemes and from reduced employment costs.

The Australian parent reported a 3 percent fall in net profit to A$382 million (NZ$421.5m) in the half, as its restructuring costs, the amortisation of Axa assets and a revaluation of Treasury stock weighed on the bottom line.

The underlying profit gained 16 percent to A$510m.

NZN

source: newshub archive