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

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news