The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialThu 08 Feb 18

AMP Doubles Profit After 2016 Net Loss

94254a5d-5397-4f5b-b08d-c0ff97773d54

AMP, Australia’s largest wealth manager, has more than doubled its full-year underlying earnings for 2017, a 114 per cent rise for the year ended December 2017.

The company posted a net profit of $848 million, beating analysts’ expectations and markedly improving on their 2016 net loss of $344 million– AMP’s worst posted result in over a decade.

The result was driven by a strong boost in earnings from the banking division and the markets division. This was reflected in strong earnings momentum in AMP Bank (up 17 per cent) and AMP Capital (up 8 per cent).

In afternoon trading, AMP shares were changing hands at $5.20 up 3.48 per cent.

Related reading: AMP Appoints Construction Partner for Quay Quarter Project

"In 2017, we delivered a strong recovery in underlying profits and solid operating performances across the business,” AMP chief executive officer Craig Meller said.

"Our growing global capability in infrastructure and real estate investment has driven record external cashflows into AMP Capital, including a major contribution from one of our Chinese partnerships, China Life AMP Asset Management.

The group has also partnered with US real estate investor, PCCP, which Meller says will further accelerate the growth of AMP’s real assets business.

AMP’s Wholesale Australian Property Fund recently acquired the Gasworks Plaza complex in Newstead, an inner-city suburb of Brisbane. The fund paid $248.4 million for the complex, picking it up from listed retirement group Aveo.

The company said the positive performance of AMP Bank was driven by a 14 per cent rise in residential lending to $18.9 billion underpinned by a conservative credit policy. Loan growth moderated as expected in the second half as the market adjusted to new regulatory requirements.

Related reading: Moody’s Reports Delinquency Rates Improve as Interest-Only Loans Fall

AMP has maintained its final dividend at 14.5 cents a share, franked at 90 per cent. The total 2017 dividend is 29 cents a share and is within AMP's stated target range of 70 to 90 per cent of underlying profit.

In November it was revealed that AMP Capital had acquired a 50 per cent share in Brisbane’s Indooroopilly Shopping Centre split across two of its funds and assuming management of the super-regional centre on behalf of investors.

AMP Capital has also taken a 21 per cent stake in a $1 billion state-of-the-art cancer research centre in Victoria.

Construction will soon begin on the cornerstone residential component of Circular Quay’s $3 billion Quay Quarter development following AMP Capital’s appointment of Richard Crookes Constructions as contractor.

ResidentialOfficeInfrastructureAustraliaFinanceResearch
ADVERTISEMENT
TOP STORIES
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
View All >
Lincoln Place Eagle Point Bowls Club and Clubhouse
Land Lease Communities

Lincoln Place Plots 209-Home Scheme on Gippsland Purchase

Leon Della Bosca
Linic Property Group Saunton Jindalee
Residential

Linic Group Moves 43-Unit Jindalee Scheme Ahead

Leon Della Bosca
Lindfield SSD Resi EDM
Residential

North Shore $154m Apartment Play Tests Zoning Limits

Vanessa Croll
The $154m proposal for Sydney’s Lindfield is being pursued under NSW planning rules for build-to-rent and affordable hou…
LATEST
Lincoln Place Eagle Point Bowls Club and Clubhouse
Land Lease Communities

Lincoln Place Plots 209-Home Scheme on Gippsland Purchase

Leon Della Bosca
3 Min
Linic Property Group Saunton Jindalee
Residential

Linic Group Moves 43-Unit Jindalee Scheme Ahead

Leon Della Bosca
3 Min
Lindfield SSD Resi EDM
Residential

North Shore $154m Apartment Play Tests Zoning Limits

Vanessa Croll
2 Min
Markets

Australia’s Top 20 REITs Revealed

Shravanth Reddy
6 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/amp-doubles-profit-after-2016-net-loss