AMP Limited (ASX:AMP) continues to face significant challenges as it navigates a volatile financial environment. The company reported a $103m net profit for the first half of 2024, down sharply from $261m in 2023. A key factor behind the decline was compression in the Net Interest Margin (NIM), which saw profits drop by 38.6% year-on-year. The bank has focused on maintaining margins in a fiercely competitive lending market, resulting in stable loan books but underwhelming financial performance.
On the brighter side, AMP's platform business saw growth, with net cashflows increasing by 76% in Q3 2024 compared to the same period in 2023. The company's North platform continues to attract independent financial advisers, contributing to a rise in assets under management to $78.1bn.
AMP CEO Alexis George expressed cautious optimism: “While the market remains tough, our focus on careful margin management and the upcoming launch of our digital bank puts us in a strong position to diversify our offerings.” However, challenges in superannuation and corporate investments remain, with continued outflows from superannuation products.
