AMP Shares Plunge 22% Despite Profit Gains – What Investors Need to Know
AMP is facing a turbulent moment on the stock market as shares dive to a seven-month low, dropping more than 22 percent in early trading. Investors reacted sharply after the company announced its final results under outgoing CEO Alexis George, with the absence of a share buyback or any other capital return hitting confidence hard.
At the heart of the reaction is AMP’s full-year statutory profit for 2025, which came in at $133 million, down 11 percent from the previous year. This figure reflects a series of one-off costs, including the settlement of legacy legal claims and a broader business simplification program. These moves were aimed at streamlining operations and focusing AMP’s business on wealth management, retirement solutions and its banking arm.
However, the underlying numbers tell a different story. Stripping out those one-off costs, AMP’s net profit actually rose nearly 21 percent to $285 million. This growth was driven by stronger performance across its superannuation and investments divisions and by the North super and pension wrap platform, signaling that core operations are strengthening even as headline numbers falter.
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Despite these underlying gains, investors were clearly unsettled. The market had anticipated some form of capital return, particularly a share buyback, which did not materialize. CEO Alexis George acknowledged the negative reaction in a conference call, insisting that the results are credible and that the business is showing improvement across all units. She also highlighted the strong performance of AMP’s advice platform, a key pillar of the company’s strategy moving forward.
The AMP Bank segment, however, showed a 9.8 percent drop in underlying profit, reflecting the costs of scaling its new digital bank, AMP Bank GO. The platform, aimed at individuals and micro-businesses, reported an underlying loss of $10 million but has managed to attract over 15,000 customers and $310 million in deposits, exceeding internal expectations.
This transition period also marks a leadership change, with CFO Blair Vernon set to succeed George in March. Under George’s tenure, AMP has significantly simplified its operations and sought to resolve past regulatory and legal challenges stemming from the banking royal commission. The final dividend was set at two cents per share, bringing the total payout for the year to four cents, a cautious move given market expectations.
What this all means is that AMP is navigating a delicate balance. While operational performance is improving and underlying profits are strong, investor sentiment is fragile. The market’s reaction underscores how critical communication and strategic capital moves are in maintaining confidence during periods of transition.
Stay tuned as AMP moves forward under new leadership and follow our coverage for real-time updates on how these financial strategies will impact shareholders and the broader market.
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