AMP New Zealand financial services posts 2.8% gain in underlying operating profit
Its operating earnings increased 5% to $A126 million in 2016 from 2015 largely as a result of higher profit margins.
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AMP's New Zealand financial services, the local unit of the Australian financial services firm, reported a higher underlying operating profit after tax although the parent reported a net loss.
New Zealand financial services reported an underlying operating profit after tax of $A145 million for 2016 versus $A141 million in the prior year.
Its operating earnings increased 5% to $A126 million in 2016 from 2015 largely as a result of higher profit margins, partially offset by changes in the taxation of life insurance business in New Zealand that resulted in the loss of transitional tax relief from July 1, 2015. As a result, the operating earnings do not include $A9 million of transitional tax relief that was included in the prior year, it said.
Its profit margins increased 14% to $A112 million, largely from improved results in wealth management.
The company said its controllable costs decreased 4% to $A80 million as it remains focused on cost control, including business reorganisation.
Its net cash flow fell 16% to $A372 million, reflecting lower KiwiSaver flows and a reduction in one-off transfers of clients on to its platforms. New Zealand financial services had 12% of the total KiwiSaver market as at September 30, 2016, and approximately 238,000 customers.
Parent AMP Ltd meanwhile reported a net loss of $A344 million for 2016 from a $A972 million profit the year before and announced an $A500 million on market share buyback beginning in the first quarter.
(BusinessDesk)
Rebecca Howard
Thu, 09 Feb 2017
Thu, 09 Feb 2017
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AMP New Zealand financial services posts 2.8% gain in underlying operating profit
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