AMP Resets Cost Allocation and Cost-to-Income Metrics Ahead of FY25 Results

AMP ( (AU:AMP) ) has provided an update.

AMP Limited has revised how it allocates technology and property-related costs across its business units and group centre to better align with its simplified operating structure, following an extensive transformation and cost-reduction program. The changes do not alter AMP’s total controllable cost base or overall NPAT, but they do lead to a restatement of underlying NPAT for individual business units in FY24 and 1H25 as more costs are reallocated from Group to the operating units. Looking ahead, AMP expects FY25 costs to remain within existing guidance, and forecasts FY26 controllable costs of A$630–640 million, reflecting 3–4% inflation and higher expenses from scaling its AMP Bank GO platform. The company is also revising its cost-to-income methodology to align with peers by excluding investment income, resulting in higher reported CTI ratios for prior periods, a move aimed at giving markets a more comparable and transparent view of the group’s efficiency and business unit performance.

The most recent analyst rating on (AU:AMP) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on AMP stock, see the AU:AMP Stock Forecast page.

More about AMP

AMP Limited is an Australia-based financial services group that operates multiple business units including banking and wealth management. Following a period of transformation and a significant cost-reduction and business simplification program, the group has been resetting its cost base and operating model to reflect its go-forward structure and to provide clearer visibility on the performance of its underlying businesses for investors.

Average Trading Volume: 4,840,257

Technical Sentiment Signal: Buy

Current Market Cap: A$4.38B

See more insights into AMP stock on TipRanks’ Stock Analysis page.