Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


AMP's NZ financial services lift 1H earnings 5% on KiwiSaver

AMP's NZ financial services lift 1H earnings 5% on KiwiSaver flows

By Paul McBeth

Aug. 21 (BusinessDesk) - 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 ended June 30 from the same period a year earlier, while a strong New Zealand dollar fattened the return to the Australian parent, delivering earnings of A$55 million from A$46 million, AMP said in a statement. The New Zealand business trimmed controllable costs by $8 million to $45 million, 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. "Cost savings for the first half of the year have stemmed 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 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$510 million.

The board declared an interim dividend of 12.5 Australian cents per share, payable on Oct. 10 with a Sept. 5 record date.

The New Zealand unit's life insurance income was flat in the half, which it said was consistent with the industry, with rising insurance costs weighing on demand.

Cashflows were bolstered by AMP New Zealand switching new advisers and their clients on to its financial services platforms, with its WealthView platform growing 71 percent to hold almost $1 billion under management as at June 30.

AMP New Zealand cut its adviser numbers to 581 as at June 30 from 606 a year earlier.

The dual-listed shares were unchanged at $6.10 on the NZX, and last traded at A$5.52 on the ASX.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news