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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news