Wealth manager AMP has boosted interim dividend 12% to 14 cents a share from 12.5 cents a year ago after reporting a 33% rise in net profit for the six months to June 30.
AMP told the ASX that first-half net profit rose to $507 million from $382 million in the six months to June, 2014.
Underlying profit (which AMP concentrates on) however could only manage a much smaller rise of 10%, to $570 million, from $510 million in the year-earlier period.
The group’s cost-to-income ratio was 43.1%, an improvement of 1.9 percentage points on the year-earlier period (because revenues rose faster than costs).
Revenue from ordinary activities climbed 19% in the June half year to $8.624 billion from $7.245 billion.
AMP said it has $2.3 billion of capital above minimum regulatory requirements at the end of June.
"AMP maintains a strong balance sheet, with little change to gearing and has access to significant liquidity," the group said.
AMP 1Y – AMP half-year profit up 33%
Chief executive Craig Meller said in this morning’s announcement that the performance reflects a strong contribution from AMP’s core Australian business.
“The continuing delivery of our strategy to be a more customer driven organisation and our business efficiency program are on track," he said.
“Together with the improvements across our Australian businesses, it is also particularly encouraging to see strong progress from our partnership in China,” he said.
AMP said it will again offer a Dividend Reinvestment Program to eligible shareholders and no discount will apply to the allocation price. Shares will be bought on market and the dividend will be franked to 85%, up from 70% a year ago, with the unfranked amount being declared as conduit foreign income.
