AMP shares continue to climb higher during afternoon trading after the company posted its half-year results this morning
The post The AMP (ASX:AMP) share price is pushing 4% higher this afternoon appeared first on The Motley Fool Australia. –
The AMP Ltd (ASX: AMP) share price is lifting higher as we walk through afternoon trade.
AMP shares are on the move after the company posted its half-year results. Let’s investigate further.
What did AMP announce?
In a positive for the AMP share price, the company recognised a 57% year-on-year increase in net profit, reaching $181 million.
Moreover, its Australian wealth management assets under management (AUM) grew 8% also.
This carried through to surplus capital of $452 million above target requirements. As a result, the group’s underlying return on equity was 8.3%, up from 6% the year prior.
In contrast to these results, AMP decided against paying a dividend, as the board seeks to ring-fence capital budgeting, which is consistent with previous language on its balance sheet. For instance, AMP has other drains and pulls on liquidity in its AMP Capital Private Markets demerger to consider.
However, AMP authorised a share repurchase program of $200 million on 30 June, to offset this cancelled dividend. Little colour was given in the report on when investors can expect the dividend to be reinstated.
AMP did however give colour on FY21 guidance expectations. It sees controllable costs of $775 million, in line with previous guidance.
Moreover, AMP estimates the cadence of loan growth for AMP Bank will remain strong into the second half, whereas AMP Capital FY21 earnings are tipped for a down-step from the year prior.
Investors have rallied the AMP share price as we walk through afternoon trade, on heavy volume.
Shares in the financial services giant are now exchanging hands at $1.12 apiece, a 3.89% gain on the day, and nearly a 2% gain from midday.
AMP share price snapshot
The AMP share price has posted a year-to-date loss of 28%, extending the previous 12 month’s loss of 19%.
These results have lagged the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.
Should you invest $1,000 in AMP right now?
Before you consider AMP , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
AMP (ASX:AMP) share price higher despite cancelled dividend
AMP (ASX:AMP) share price on watch as net profit jumps 57%
How did the AMP share price respond last earnings season?
The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.