Citi has reinstated its buy rating on AMP, anticipating the wealth manager will announce additional capital return measures concurrent with its FY25 results. Citi analyst Nigel Pittaway highlights feedback indicating robust inflows into the North platform. Furthermore, Pittaway expects S&I flows to become positive in FY26, underpinned by continued stringent cost management and the stabilisation of bank earnings. AMP is an Australian financial services company that provides superannuation and investment products. It also offers banking and advice services to individuals and businesses.
Pittaway believes AMP’s platform business multiple still has scope for expansion. With the stock currently trading below its mid-October levels, Citi maintains a target price of $2.10. Analysts note that the North platform continues to gain traction, supported by improved adviser sentiment and potential upside from retirement products. They forecast assets under management in 2H25 to increase by approximately 6 per cent, reaching $87.8 billion.
In the banking sector, AMP is prioritising margin over volume. Housing loan growth is tracking at roughly 0.95 times the system average, while retail deposits have decreased by about 2.5 per cent. This strategy supports broadly stable margins of approximately 1.3 per cent in the second half of calendar year 2025. Citi suggests that capital management is now back on the agenda following $68 million in insurance recoveries and the resolution of two significant class actions. These factors have eased downside risks and reduced buffer requirements.
Pittaway sees potential for increased dividends or an on-market buyback, reinforcing the upgraded recommendation. Over the past 12 months, AMP shares have increased by 12.9 per cent.
