AMP led off this morning’s reporting companies with a 10% rise in full-year net profit to $972 million and a higher dividend.
The improvement was struck despite what the fund manager and wealth giant said were challenging investment markets during the second half of the year.
But directors said the result did reflect “good earnings growth, particularly in Australian wealth management, AMP Capital, AMP Bank and New Zealand”.
Underlying profit rose 7% to $1.12 billion for the year.
The company increased its final dividend to 14c per share from 13.5 cents, taking the total for the year to 20 cents a share, up 8% on 2014.
The 2015 dividend represents a ratio of 74%, at the lower end of the new nominated payout range by the company of 70% to 90%.
In this morning’s ASX release, AMP Chief Executive Craig Meller said: "This is a very good performance against a backdrop of challenging markets in the second half.
"Momentum continued across Australian wealth management and AMP Capital, which delivered a particularly strong result as our international investment management profile expands, both in China and more broadly.
"Our business efficiency program is on track and we continue to focus on the improvement of our wealth protection business, with the new claims process providing a better outcome for customers and shareholders.
"AMP has a clear focus to be a more customer centric, efficient and international organisation. The execution of this strategy is unlocking the long-term potential of our business, which we are confident will continue to deliver value for our shareholders."
AMP said its “Australian wealth management operating earnings for FY 15 were A$410 million, up 10 per cent compared with FY 14, driven by strong net cashflows leading to a 10 per cent growth in AUM.”
“Australian wealth protection operating earnings were A$185 million in FY 15 compared with A$188 million in FY 14.
“Claims experience reflected the continued roll out of the new claims approach, reversion to long term assumptions and volatility in the second half of the year,” directors remarked on what appears to have been a rare weak part of the year’s performance.
AMP shares dipped 3 cents yesterday to end at $5.18.
