AMP Ltd reported strong financial results for the first half of the 2024 financial year, with net profit rising 57 percent to $154 million and revenue increasing by 4 percent. The wealth management firm also announced a $150 million on-market share buyback and declared a 3-cent per share interim dividend, signaling confidence in its financial position.

The company’s assets under management grew to $167.6 billion, up from $153.9 billion in the previous corresponding period, driven by growth across its platforms, superannuation, and New Zealand wealth management divisions. Cashflows showed notable improvements, including a 33 percent rise in the North platform, Super & Investments returning to positive cashflow for the first time since 2017, and a nearly 20 percent increase in the New Zealand segment. Profitability in platforms and super businesses expanded in the double digits, while the partnerships segment saw a sharp increase in underlying profit from $2 million to $43 million over the six-month period. However, underlying profit at AMP Bank declined from $30 million to $20 million.

Chief Executive Blair Vernon, who has been in the role for just over four months, highlighted the company’s ongoing investment in artificial intelligence (AI), stating that AMP is spending tens of millions of dollars annually on the technology. The firm has already implemented AI-powered note-taking within its North platform, improving efficiency for financial advisers. A second phase of AI development, called AI implement, is planned for rollout in the second half of the year, aiming to reduce the effort advisers expend on portfolio implementation.

Despite recognizing the potential of AI, Vernon expressed caution about its risks, particularly relating to cybersecurity and cost management. He emphasized a balanced approach between leveraging AI for growth and mitigating associated risks, describing this as a “dual focus on offence/defence.” Vernon also indicated that AMP is taking a holistic view of AI integration, focusing on end-to-end workflow improvements rather than deploying numerous isolated AI agents that could create complexity.

While speculation has circulated regarding potential acquisitions, including interest in Colonial First State, Vernon dispelled rumors of imminent deals, stating the company’s current priority is organic growth and returning capital to shareholders.

Following the announcement, AMP’s shares rose nearly 6 percent to $2.31 on the Australian Securities Exchange. The interim dividend, which is 20 percent franked and up from 2 cents per share a year ago, is scheduled for payment on September 25.