ASX Release
14 February 2025
AMP Appendix 4E & Annual report
In accordance with ASX Listing Rules, AMP Limited attaches for the full year ended
31 December 2024 its:
•
Appendix 4E; and
•
Annual report.
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Investor enquiries
Brett Zarb
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Richard Nelson
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Jo Starr
Mobile: +61 416 835 301
Authorised for release by the AMP Limited Board.
Appendix 4E
Preliminary Final Report for the year ended 31 December 2024 as required by ASX listing rule 4.3A
Results for announcement to the market 1
For the year ended 31 December 2024
$m
Revenue from ordinary activities 2 3
2,869
up 5%
Profit from ordinary activities after tax attributable to shareholders
150
down 43%
Net profit for the year attributable to shareholders
150
down 43%
Dividends
Final dividend – franked at 20% (cents per share)
1.0
Interim dividend – franked at 20% (cents per share)
2.0
Record date for determining entitlements to the final dividend
3 March 2025
1 Current reporting period is 1 January 2024 to 31 December 2024. Prior corresponding period is 1 January 2023 to 31 December 2023.
2 Information has been presented on a continuing operations basis.
3 Revenue from ordinary activities includes fee revenue of $856m, interest income using the effective interest method of $1,660m, other interest
income of $185m, share of profit from associates of $84m, movement in guarantee liabilities of $7m and other income of $77m.
31 Dec 2024
31 Dec 2023
Net tangible assets per ordinary share
$
$
Net tangible assets per ordinary share
1.31
1.31
Additional information supporting the Appendix 4E disclosure requirements can be found in the accompanying 2024 Annual
Report.
This document should be read in conjunction with the AMP Limited Annual Report for the year ended 31 December 2024 and
any public announcements made by AMP Limited and its controlled entities during the year in accordance with the continuous
disclosure obligations arising under the Corporations Act 2001 and ASX Listing Rules.
The information in this report is based on the consolidated financial statements of AMP Limited which have been audited
by Ernst & Young. A copy of their audit report is included in the attached Annual Report for the year ended 31 December 2024.
Changes in controlled entities during the year ended 31 December 2024
Name of the entity
gained control
lost control
ACN 154 462 334 Pty Limited
18-Dec-24
AMP Financial Planning Pty Limited
29-Nov-24
AMP Group Services Pty Limited
21-Aug-24
AMP Nominees (NZ) Limited
05-Feb-24
AMP Planner Register Company Pty Limited
29-Nov-24
AMPCI (SG) Pte. Limited
17-Jul-24
Associated Planners Financial Services Pty Limited
29-Nov-24
Charter Financial Planning Limited
29-Nov-24
Forsythes Financial Services Pty Ltd
12-Feb-24
Genesys Group Holdings Pty Limited
22-May-24
Hillross Financial Services Limited
29-Nov-24
ipac Group Services Pty Ltd
25-Dec-24
Jigsaw Support Services Pty Limited
29-Nov-24
King Financial Services Pty Ltd
22-May-24
Pajoda Investments Pty Ltd
15-Feb-24
PPS Financial Planning Pty Ltd
10-Jan-24
PPS Lifestyle Solutions Pty Ltd
15-Feb-24
Prosperitus Pty Ltd
12-Feb-24
Quadrant Securities Pty Ltd
09-Jun-24
SMSF Advice Pty Limited
23-Sep-24
Strategic Planning Partners Pty Ltd
12-Feb-24
T.I.M.E. Partners Pty Limited
24-Jul-24
TFS Financial Planning Pty Ltd
15-Feb-24
Total Super Solutions Pty. Ltd.
15-Feb-24
AMP LIMITED Appendix 4E
Annual report 2024
Helping people
create their
tomorrow
Reporting suite
Sustainability
Report 2024
Modern Slavery
Statement 2024
Corporate
Governance
Statement 2024
ESG Data Pack
2024
About this report
We take our reporting obligations seriously, and we
provide concise and up-to-date information about
AMP at amp.com.au/shares.
AMP’s 2024 Annual report sits alongside a suite
of materials that seek to provide a fulsome update
on our operations and approach to important
matters such as governance and sustainability.
Acknowledgement of Country
AMP acknowledges all First Nations Peoples across Australia.
We recognise the Traditional Custodians of the land and value their
connection to Country, waterways and sky. We pay our respects
to the Elders for their resilience, courage and wisdom; for ensuring
the survival of this country’s rich culture and heritage. Our hope for
the future is to unite as one people, to listen and learn from each
other with respect and walk the path to reconciliation together.
Contents
01
Introduction
02
2024 highlights
04
Chair’s message
06
CEO message
08
How we create value
10
Our strategy
12
Sustainability
overview
14
Group financial
performance
16
Business review
20
Material risks
24
Our approach
to governance
26
Board of directors
30
Group executive
committee
34
Directors’ report
40
Remuneration report
73
Financial report
149 Additional
information
The Directors’ report, Financial
report and the Independent
Auditor’s report are dated and
current as at 14 February 2025.
Unless otherwise specified, all
amounts are in Australian dollars.
AMP Limited ABN 49 079 354 519.
Authorised for release by the
AMP Limited Board.
In 2024 we celebrated AMP’s 175-year
heritage of supporting customers to live
financially well, and to meet their needs
today and into the future. Our strategy
enables us to deliver on our purpose:
Helping people
create their tomorrow
1
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
2024 highlights
$236m
Underlying NPAT,
up 15.1%
9.0cps
Underlying EPS up 25%
$648m
Controllable costs,
down 6.1%
Building leadership
position in retirement
Advice transaction
completed
Employee launch of
new digital bank for
small business and
personal customers
$2.7bn
pension payments for
Australian customers
in retirement
3,100+
members supported
with intra-fund advice
on their superannuation
728,000+
customers helped through calls
about their superannuation,
banking or investment needs
Financial
performance
Business
progress
Our
customers
2
$1.1bn
capital return delivered
since August 2022
420,912
Total shareholders
Our
shareholders
40:40:20
gender diversity targets
met across board,
executive and middle
management
Enterprise-wide
Inclusion and
Diversity Census
conducted to better
understand the
diversity profile
of our workforce
74
Employee satisfaction
(eSat score)
People and
partners
32%
reduction in scope 1 and 2
emissions from 2023
12 years
Carbon neutral position
maintained across
our operations
$13.4m
committed by AMP
Foundation across 13
impact investments
Communities
and environment
1.0¢ per share
20% franked, bringing
FY 24 full year dividend
to 3.0 cps
FY 24 final dividend
declared of
3
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
“Our goal remains to help
Australians maximise
retirement outcomes through
a combination of guidance
and innovative products that
deliver sustainable income
streams, offering peace of
mind and financial security
throughout retirement.”
Our rich history connects to our
present-day purpose of helping
people create their tomorrow.
This milestone year was an important
acknowledgement of our heritage
and a springboard for AMP’s future.
Underlying net profit of $236m for the year was up
15.1% on FY 23, with statutory net profit of $150m.
We repositioned the business for the future with the
completion of the transaction for our AMP Advice
business. The partnership we created has transformed
the advice industry landscape in Australia, providing a
large-scale services and licensee business for advisers.
There was a smooth transition to this new model in
December 2024.
In our wealth Platforms business, our innovative
retirement products available on North, continue
to attract attention in the industry and interest from
advisers. We’re proud of the returns we’ve delivered for
members in our Superannuation & Investments business,
which were top quartile in 2024 and we continue to see
improvements in flows. Our new digital bank for small
business and personal banking launched to the public in
February 2025, and our New Zealand business continues
to deliver steady returns despite the challenging
local economic environment.
Capital management
In October 2024 we completed our capital management
program following the sale of AMP Capital, returning
$1.1 billion to shareholders since August 2022 through
dividends and on-market share buybacks. We have
announced a FY 24 final dividend of 1.0 cent per share,
20% franked, reflecting the progress made during the year.
The Board carefully considers capital as one of its core
responsibilities. Our objective is to strike a balance
between short term returns to shareholders and
investment in strategic initiatives that will drive sustainable
growth in shareholder value over the medium to long term.
Chair’s message
In 2024, we celebrated
175 years of AMP serving
the community
4
Governance
As you are aware the Board has
committed to ensuring we have skills
around the table that are relevant to
the business AMP is today and will be
in the future. At the beginning of 2024
we welcomed Kathleen Bailey-Lord
and Anna Leibel to the Board, bringing
fresh perspectives and complementary
expertise to the Board. Their appointments
support our commitment to maintaining
a diverse and skilled board that is
well placed to perform its important
governance role and oversight of the
management team in delivering for
shareholders. This is an ongoing task
that is top of mind for the Board.
We are focused on implementing fair
remuneration structures and practices
that align with shareholder interests
and that are appropriate for a business
of our size. Our approach is covered
in our Remuneration report.
Supporting Australians
to be financially confident
in retirement
Australia has much to be proud of in
our superannuation system. We have
a robust, member-focused system that
empowers Australians to shape their
financial futures, with the objective of
super now enshrined in law.
AMP has a key role to play in helping
people to retire with confidence.
While the system is strong, many people
struggle to navigate the decumulation
phase, with research showing that
despite the assets of retirees increasing,
many still fear they will outlive their
savings. This impacts the financial
confidence of retirees, causing many
to underspend and unnecessarily
compromise their quality of life.
Superannuation funds have an important
role to play in helping educate members
about the system and how it interacts
with the Age Pension. This includes
providing access to more affordable
and accessible financial advice,
particularly in the critical years
leading up to retirement. This year
we have launched a new digital advice
solution for our members, which will
play an important role in addressing
this knowledge gap.
Our goal remains to help Australians
maximise retirement outcomes through
a combination of education, guidance,
and innovative products that deliver
sustainable income streams, offering
peace of mind and financial security
throughout retirement.
Ensuring a competitive
banking sector
Like superannuation, Australia’s
banking sector plays a vital role in the
lives of consumers, businesses, and the
economy as a whole. While the system
has generally served Australia well, the
sector remains highly concentrated at
the top end.
Current regulatory and policy settings
reinforce the dynamics that favour
the large banking institutions, and this
has led to an uneven playing field that
reduces the ability for serious, innovative
competition to emerge. Such innovation
is necessary to drive the best value and
service for customers. Recognising this,
the Government has asked the Council
of Financial Regulators and the ACCC
to inquire into the role and state of
the small and medium-sized banking
sectors in providing competition, and
critically, current and potential barriers
to competition.
This is a very important task that carries
with it the opportunity to foster greater
competition. Innovation nearly always
happens at the edge of the economy. At
that edge, funding is often hard to access
as over-regulation, lack of competition
and the allocation of capital in the hands
of a few dominant players, all combine
to reduce opportunity for individuals and
small (often new) businesses. Addressing
the uneven playing field would result in
more consumer choice and increased
innovation, with customers the biggest
winners.
We have seen the Productivity
Commission and multiple inquiries over
recent years repeatedly highlight the
need for a more level playing field in
the sector. It is therefore critical that
industry, regulators and Government
work together in 2025 to review settings
to ensure the smaller bank sector is
able to provide a viable alternative
to the largest institutions.
The cost of regulation for smaller
banks leads to an outsized unit cost of
serving customers and this needs to be
addressed if we want them to provide
genuine competition. The cost of
regulation could be reduced for smaller
players by setting prudential regulation
requirements in proportion to the size
and complexity of the bank. If this were
addressed, it would improve the ability
of smaller banks to compete on a more
even playing field, while safeguarding
critical market characteristics such as
safety and stability.
Looking forward
With AMP repositioned for the future,
we have momentum in our wealth
businesses, and a strategic focus on
supporting Australians in retirement.
Our new digital bank has also been
launched, with a focus on enabling small
businesses to thrive. I would like to take
this opportunity to thank our Directors,
Executive Committee, and all our
people for their hard work during 2024.
Finally, thank you to our shareholders
for your continued support.
Mike Hirst
Chair, AMP Limited
Far left: AMP Sydney Cove
Building, Circular Quay,
New South Wales, 1962.
Credit: Nic Welbourne.
Left: Jubilee year
certificate, 1899.
5
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
CEO message
We are supporting our customers
around the two biggest assets most
Australians will ever own – their
home and their retirement savings.
Positioned for growth
as a simpler AMP
What are you proud of when you look back
at 2024?
In 2024 we celebrated 175 years of AMP, and
I’m proud that we could honour that heritage
by continuing to deliver on our promises to our
stakeholders. As a celebration I had the opportunity
to walk through our archives which are now housed
in the Menzies library at ANU. This was both an
emotional and motivating experience as we respect
the heritage of the organisation but acknowledge that
the future AMP we are building will be very different.
During the year we have delivered on the
commitments we made including returning $1.1 billion
to shareholders, driving efficiency and meeting
our cost targets, delivering growth in our wealth
businesses and managing the performance of AMP
Bank in a very difficult environment. Importantly,
we continued to simplify AMP with the sale of our
Advice business. The transaction with advice services
provider Entireti and AZ NGA is an important
partnership and we are excited by the opportunity
this collaboration presents for both our businesses.
We have demonstrated positive momentum in flows
in our Platforms and Superannuation & Investments
businesses, have launched our new digital bank for
small business and personal banking and are well
positioned for a positive year ahead.
How did AMP’s businesses perform?
AMP’s underlying net profit after tax for the year was
$236m, an increase of 15.1% from FY 23. The Board
has declared a FY 24 final dividend of 1.0 cent per
share, bringing the FY 24 full year dividend to 3.0
cents per share, 20% franked. We have maintained
a disciplined focus on controllable costs, which have
reduced by 6.1% to $648m, with clear cost targets
going into 2025. Importantly, we have momentum in
our wealth businesses and we are positioning AMP
as a pre-eminent specialist in solutions for Australians
wanting confidence in their retirement.
The performance of our Platforms business has
been supported by continued momentum in net cash
flows, positive market conditions and cost discipline.
We have strengthened our position in the retirement
space, particularly through our multi-award winning
MyNorth Lifetime account. We remain focused on
continuing the development of innovative solutions
for advisers to support Australians to retire with
financial confidence.
In Superannuation & Investments, we are pleased to
see continued improvement in net cash flows, with
increased retention supported by strong investment
returns, a compelling insurance offering and
competitive fees for members.
6
In AMP Bank, we have managed the
loan book carefully, as the highly
competitive environment and difficult
economic climate meant there was
a necessity to prioritise margin. The
launch of our new digital bank for
small business and personal banking
was delivered on time and on budget
with initial customer reactions being
positive. This innovation will help to
diversify our revenue and funding mix
in the medium and longer term.
Our New Zealand business has
delivered a steady performance,
and we have continued to diversify
revenue sources, despite a challenging
economic environment in that market.
Tight management of costs continues.
In our partnerships, contribution
from China Life was up 20.5%, and
our partnership with PCCP benefited
from the normalisation of property
valuations in the US.
How are you supporting customers
in the current environment?
The cost of living pressures in Australia
and New Zealand have been challenging
for our customers and for our people,
meaning our focus on financial wellness
is more important than ever.
We have responded with initiatives to
support customers who find themselves
in financial hardship, and to refer them
for dedicated support where and when
it is needed. This included supporting
191 of our most vulnerable customers
through our partnership with Good
Shepherd, and delivering specialised
training for 116 customer facing
staff concerning how to best assist
vulnerable and distressed customers.
Through this current challenging
environment for customers and
members we are continuing to support
them to grow their longer-term
wealth. In our Superannuation and
Platforms businesses, the returns we
are delivering are helping customers
and members to achieve their financial
goals. We are also supporting
Australians in navigating the complex
retirement system, particularly the
transition to retirement and the
drawdown phase. We know that many
retirees preserve their super balances
rather than spending them, with a
fear of running out meaning that
they compromise their quality of life
– especially during the active early
years of retirement.
To address this, we will continue
to advocate for more affordable,
accessible advice, to enhance
retirement outcomes, as well as
developing our own innovative
solutions to help retirees unlock the
benefits from these retirement savings.
In AMP Bank, we know that small
businesses are the cornerstone of
the Australian economy, and our new
digital bank is focused on delivering
tailored features and functionality
to support their growth and success.
We have also updated the home loan
application requirements for self-
employed customers, simplifying the
borrowing experience for business
owners and helping them to unlock
borrowing options.
How is AMP leveraging the
opportunities with AI and other
emerging technologies?
We see great opportunities in AI. Our
priority has been to establish an AI
centre of excellence and to develop
robust governance processes around
our adoption of AI. 97% of our people
have completed training in AI literacy
and responsible AI.
With that framework in place we are
deploying AI to make it easier for our
people to help our customers and
members. We have launched an AI
assistant across our Superannuation
contact centre that features chat,
call transcription and summarisation,
quality monitoring and customer
sentiment analysis, and will be rolling
this out to other contact centres
in 2025. We will also deliver an AI
assistant to advisers using our North
platform, to support them with their
client annual reviews.
These are exciting developments, but
we are aware of the responsibilities
that arise with the use of AI and have
implemented strong governance and
monitoring mechanisms to ensure
equity and fairness for our people
and customers.
What are your priorities
for 2025?
I am proud of the progress we have
made over the past year to simplify
the business and to drive growth. In
2025, we have the opportunity to build
on that momentum, and we are well
positioned to do so.
Our North platform continues to grow,
and we will further develop features
that advisers truly value, as well as
innovative solutions that support their
clients in retirement.
In Superannuation & Investments, we
have recently launched digital advice
for members, and we will be delivering
a lifetime income solution, both of
which will help more Australians with
a financially secure retirement.
We have just launched our new small
business and personal bank, which is an
important strategic initiative. I’m proud
that we’ve made this come to life in just
over a year, and it has brought a new
energy and new agile ways of working
to AMP.
Finally, we remain focused on delivering
on our commitments of disciplined cost
management and driving operational
and capital efficiency.
I’m proud of how we are supporting
our customers with valuable solutions
around the two biggest assets most
Australians will ever own – their home
and their retirement savings. Thank
you for your ongoing support as we
position AMP for growth and strive to
deliver on our purpose, helping people
create their tomorrow.
Alexis George
AMP Chief Executive Officer
“I am proud of the progress we have made to stabilise and
simplify the business. In 2025 we have the opportunity to
drive growth, and we are well positioned to do so.”
7
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
C
o
m
m
un
it
ie
s
a
n
d
en
vi
ro
n
m
e
nt
We
a
re
c
om
mi
tte
d t
o
Our enablers
Our business areas
Respect risk
Embed appropriate
governance structures
to maintain robust risk culture
Brand, reputation
and ESG
Driving consistent delivery
of positive outcomes for our
stakeholders: shareholders,
customers, people and
communities
Digital and data
Leveraging digital and data
to better understand and
serve our customers
Purpose and culture
Helping people create their
tomorrow, and living the AMP
values every day
How we create value
Platforms
AMP’s flagship
North platform.
Includes super,
retirement and
investment solutions
AMP Bank
Providing home
loans, deposit
and transaction
accounts
New Zealand
Wealth
Management
Offering super,
retirement, advice
and general
insurance
Strategy
AMP’s strategy provides a framework for AMP to become a
pre-eminent retirement specialist, giving Australians financial
confidence in their retirement. The strategy seeks to enable
AMP to deliver on its purpose:
Helping people create their tomorrow
8
Pe
o
pl
e
a
n
d
p
ar
tn
er
s
C
us
to
m
er
s
he
lp
in
g
pe
op
le
c
re
at
e t
he
ir
to
mo
rr
ow
The value we create
Customers
$2.7bn
pension payments for Australian
customers in retirement
15.0%
1 year annual return for MySuper 1970s,
our largest default super cohort by AUM
Our communities
$1.5m
contributed to charities by AMP
employees and advisers, including
matched funding from the
AMP Foundation
Our people
74
Employee satisfaction (eSat score)
40:40:20
gender diversity targets met across board,
executive and middle management and
the organisation overall
Shareholders
420,912
Total shareholders
$1.1bn
capital return
delivered since
August 2022
Super &
Investments
A super and pension
solution across
individual and
corporate super
Partnerships
Including CLAMP
and CLPC in
China, PCCP in the
US, and Mutual
Advice Partners
9
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
AMP is positioned to become a preeminent
retirement specialist, giving Australians
financial confidence in retirement.
Our purpose
Our strategy
Helping people
create their tomorrow
10
Driving flows in Platforms
Growing new advisers using North and building
its Managed Portfolios offer.
Executing on strategic initiatives
in Superannuation & Investments
Launch of new retirement solution and digital advice
to drive direct acquisition and member retention.
Scaling the new digital bank
New digital bank launched, with the focus on
marketing initiatives and enhancing features for
customers. New digital bank designed to improve
AMP Bank margins with an expanded funding base.
Leveraging AI opportunities
To achieve efficiencies for our people and
improve experiences for our customers.
Delivering on cost control
Focused on maintaining cost control and ongoing
business simplification. Successfully absorbing
inflation effects.
Driving partnerships
Continue to drive value from joint ventures
and international operations.
AMP’s strategy is centred around
the following priorities:
11
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
2024 highlights
Sustainability
overview
For 175 years, AMP has had a long tradition of serving the
communities we operate in. Our purpose – helping people
create their tomorrow – guides our actions and decision
making at AMP. For all of our stakeholders, it is about
delivering value and reporting meaningfully on our progress.
Customers
For our customers, delivering on our purpose means giving them the confidence
to take control of their finances. It means we put customers first by considering
them in all our decisions and make it as simple as possible for them to achieve
their goals.
7.9/10
Increased customer
satisfaction score
4,800+
members supported to access
$62.5m of superannuation on
compassionate or hardship
grounds
10th
year of financial wellness
research, with insights
on pressures faced
by Australians and
on productivity
3,100+
members supported with
intra‑fund advice about
their superannuation
490,000+
customers supported with
their superannuation and
banking needs through
MyAMP online services
Established AMP’s AI Centre
of Excellence underpinned by
a commitment to responsible
and ethical AI
12
AMP’s commitment to communities means addressing the broader impacts of
our value chain through our investments and managing climate-related risks and
opportunities. It’s about doing the right thing and investing in our communities.
Communities and environment
AMP’s commitment to its people is to create meaningful opportunities to contribute
and deliver positive outcomes. For our partners, this means working together to
meet the needs of customers.
People and partners
2024 highlights
2024 highlights
32%
reduction in scope
one and two emissions
since 2023
75
responsible investment options
that have been certified by
the Responsible Investment
Association of Australia and
Aoteroa New Zealand are
available to clients on MyNorth
1,450+
engagements carried out
by our Superannuation and
Investments external fund
managers on a range of
ESG issues
Introduced an upgraded
risk system to enhance
risk practices, improve
risk intelligence, simplify
processes, and facilitate
CPS230 compliance
Launched two new
leadership development
programs for aspiring and
middle level leaders
Enterprise-wide Inclusion and
Diversity census conducted to
better understand diversity
profile of our workforce
13
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Business review
Group financial
performance
Profit and loss (A$m)
FY 24
2H 24
1H 241
FY 231
% FY
Revenue
AUM based revenue
774
394
380
751
3.1
Net interest income
322
159
163
373
(13.7)
Partnerships 2
79
42
37
58
36.2
Other revenue 3
77
36
41
84
(8.3)
Total revenue
1,252
631
621
1,266
(1.1)
Variable costs
Investment management expense
(125)
(63)
(62)
(143)
12.6
Marketing and distribution
(30)
(16)
(14)
(27)
(11.1)
Brokerage and commissions
(80)
(40)
(40)
(82)
2.4
Loan impairment expense
5
6
(1)
(7)
n/a
Other variable costs 4
(64)
(33)
(31)
(59)
(8.5)
Total variable costs
(294)
(146)
(148)
(318)
7.5
Gross profit
958
485
473
948
1.1
Controllable costs
Employee costs
(272)
(149)
(123)
(294)
7.5
Technology
(169)
(85)
(84)
(160)
(5.6)
Regulatory, insurance and professional services
(55)
(29)
(26)
(76)
27.6
Project costs
(74)
(38)
(36)
(72)
(2.8)
Property costs
(56)
(23)
(33)
(62)
9.7
Other operating expenses 5
(22)
(7)
(15)
(26)
15.4
Total controllable costs
(648)
(331)
(317)
(690)
6.1
EBIT
310
154
156
258
20.2
Interest expense 6
(53)
(26)
(27)
(61)
13.1
Investment income 7
62
27
35
83
(25.3)
Tax expense
(83)
(39)
(44)
(75)
(10.7)
NPAT (underlying)
236
116
120
205
15.1
Platforms
107
53
54
90
18.9
Superannuation & Investments
67
33
34
53
26.4
AMP Bank
72
37
35
93
(22.6)
New Zealand Wealth Management
37
20
17
34
8.8
Group 8
(47)
(27)
(20)
(65)
27.7
NPAT (underlying) by business unit
236
116
120
205
15.1
Items reported below NPAT
(87)
(72)
(15)
62
n/a
Discontinued operations 9
1
3
(2)
(2)
n/a
NPAT (statutory)
150
47
103
265
(43.4)
1 Prior periods have been restated to remove Advice discontinued operations, unless otherwise stated.
2 Includes profit contributions from CLPC, CLAMP, PCCP and sponsor investments.
3 Includes Advice retained interest, North Guarantee and NZWM other revenues.
4 Includes payment of commissions, employed planner expenses and other variable selling costs.
5 Includes travel, marketing, printing, administration and other related costs.
6 Includes interest expense on corporate debt.
7 Includes investment income from Group cash.
8 Includes Partnerships, Group costs not recovered from Business Units, investment income and interest expense on corporate debt.
9 Includes sold businesses of Advice, AMP Capital and SuperConcepts and revenues in relation to external mandates now discontinued.
14
FY 24
2H 24
1H 241
FY 231
Earnings
EPS – underlying (cps) 2
9.0
4.5
4.4
7.2
EPS – statutory (cps)
5.7
1.8
3.8
9.3
RoE – underlying
6.4%
6.5%
6.5%
5.2%
RoE – statutory
4.1%
2.6%
5.6%
6.7%
Dividend
Dividend per share (cps)
3.0
1.0
2.0
4.5
Franking rate 3
20%
20%
20%
20%
Ordinary shares on issue (m) 2, 4
2,532
2,532
2,597
2,741
Weighted average number of shares on issue (m)
– basic 2
2,627
2,559
2,697
2,862
– fully diluted 2
2,672
2,603
2,738
2,904
– statutory
2,625
2,557
2,695
2,860
Share price for the period – closing ($)
– low
0.93
1.08
0.93
0.84
– high
1.66
1.66
1.19
1.37
Market capitalisation – end period ($m)
4,000
4,000
2,844
2,549
Capital and corporate debt
AMP shareholder equity ($m)
3,535
3,535
3,618
3,794
Corporate debt ($m)
750
750
550
741
Corporate gearing
12%
12%
7%
11%
Interest cover – underlying (times)5
6.4
6.4
5.5
5.0
Interest cover – statutory (times)
4.4
4.4
3.4
6.4
Margins
Platforms AUM based revenue to average AUM (bps)
45
43
46
47
Superannuation & Investments AUM based revenue to average AUM (bps)
63
63
64
64
AMP Bank net interest margin
1.26%
1.24%
1.28%
1.42%
New Zealand Wealth Management AUM based revenue to average AUM (bps)
80
80
81
82
Volumes
Platforms net cashflows ($m)6
2,756
1,596
1,160
1,401
Superannuation & Investments net cashflows ($m)6
(1,030)
(560)
(470)
(6,424)
AMP Bank total loans ($m)
23,274
23,274
22,910
24,441
Platforms AUM ($m)
79,788
79,788
74,669
71,060
Superannuation & Investments AUM ($m)
56,846
56,846
53,998
51,865
New Zealand Wealth Management AUM ($m)
11,792
11,792
11,151
10,853
Total AUM ($b)7
148.4
148.4
139.8
133.8
Controllable costs (pre-tax) and cost ratios
Controllable costs – excluding discontinued operations ($m)
648
331
317
690
Cost to income ratio – excluding discontinued operations
63.8%
65.4%
62.3%
66.5%
Staff numbers
Total staff numbers
2,366
2,366
2,400
2,454
Exchange rates
AUD/NZD – closing
1.1051
1.1051
1.0960
1.0777
AUD/NZD – average
1.0899
1.0967
1.0838
1.0802
1 Prior periods have been restated to remove Advice discontinued operations, unless otherwise stated.
2 Number of shares has not been adjusted to remove treasury shares.
3 Franking rate is the franking applicable to the dividend for that year.
4 209,341,065 shares were repurchased and subsequently cancelled in FY 24 as part of the announced on-market share buyback.
5 Prior periods have not been restated.
6 Net cashflows exclude pension payments.
7 Excludes $1.8b of AUM related to external mandates now discontinued.
15
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
FY 24 performance
Underlying NPAT increased 18.9% to $107 million (FY 23:
$90 million), driven by strong market conditions, positive
net cashflow momentum and cost discipline. Controllable
costs reduced by 2.3% to $169 million (FY 23: $173 million).
Margin compression to 45bps (FY 23: 47bps) was driven
by AUM mix changes, with higher margin managed
funds reducing as a proportion of total AUM, which
was partly offset by growth in Managed Portfolios.
Net cashflows (excluding pension payments) were $2.8 billion, up 96.7% (FY
23: $1.4 billion), driven by higher inflows benefitting from continued growth in
Managed Portfolios, which reached $19.1 billion. During FY 24, North signed 99
new distribution agreements with AFSLs, and activated ~140 net new advisers
with FUA >$1 million (net figure excludes advisers exiting the industry). AMP’s
innovative retirement solutions continue to drive new adviser interest in North.
Business review
$107m
Underlying NPAT
(FY 23: $90m)
Platforms
Strategic progress in 2024
Uplifted service and digital experience for advisers
—
Account management and cashflow management capabilities
rated #1 by SuitabilityHub
—
Servicing improvements e.g. Straight Through Processing
withdrawals increased 38% to 75%
—
Invested in sales team tools and capability, launched a new CRM
Delivered continued managed portfolios growth
—
Largest annual growth in managed portfolios to Sept 2024 1, with
a 9% increase in advisers using managed portfolios on North
—
Added 19 new practice portfolio series in FY 24
Established leader in retirement
—
MyNorth Lifetime now used by 85 licensees
—
73% of clients in MyNorth Lifetime are new to North
—
Driving client outcomes: >50% increase in average
retirement income for MyNorth Lifetime clients
1 MP growth share via platforms – NMG Managed Funds Report (Dec 2024).
16
$67m
Underlying NPAT
(FY 23: $53m)
FY 24 performance
Underlying NPAT increased 26.4% to $67 million (FY 23:
$53 million), with revenue margin at 63bps (FY 23: 64bps).
Disciplined cost management resulted in controllable costs
of $170 million (FY 23: $174 million), and variable costs
reduced 9.2% reflecting lower investment management
expenses as a result of simplification activity.
Net cash outflows (excluding pension payments) of $1.0 billion improved from net cash
outflows of $6.4 billion in FY 23 (result had reflected a mandate loss in 2H 23), as a
result of resilient inflows and a focus on retention.
Superannuation & Investments
Strategic progress in 2024
Delivering strong and consistent returns
—
Delivered investment returns >15% for
2024 for MySuper 1990s, 1980’s & 1970s
members, where majority of MySuper
members are invested
—
Top quartile ranking for 12 month returns across
almost all diversified options in AMP Super 1
Uplifted member experience
—
Transitioned insurance for 230,000 members
to TAL, delivering on average 27% reduction
in premiums
—
Improvements to digital experiences: launch
of digital insurance services; uplifts to AMP
website and MyAMP
Improved reputation and retention
—
AMP reputation score restored to historic
levels at 63.9 2, supporting retention and
new member consideration
—
Launched above-the-line Marketing
campaign highlighting differentiated
proposition
—
High brand awareness at 88% with
consumer consideration for both super
& retirement improving 3
1 Chant West, Super Fund Performance Survey, December 2024. All AMP’s Future Directions diversified options in the survey are either top
quartile or 1 position away from top quartile.
2 Reptrak as at December 2024.
3 Fifth Dimension Research.
17
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Business review
FY 24 performance
Underlying NPAT of $72 million (FY 23: $93 million)
reflects subdued volume growth as a result of
prioritising margins. Net Interest Margin (NIM) for the
year was 1.26% (FY 23: 1.42%), with NIM compression
moderating over the second half of the year. Growth
in the residential mortgage book returned in 2H 24,
driven by selective price changes and a focus on
the self-employed segment. Credit quality remained
strong, with 90+ days mortgage arrears at 0.76%.
Controllable costs reduced 11.3% through disciplined cost out initiatives and
reduced project spend which was implemented to offset the declining margin.
The public launch of the small business and consumer digital bank in February 2025
was delivered on time and on budget. This launch will be supported by marketing
focused on digital channels, including social media. The new digital bank secured
11,600 early sign ups ahead of release.
$72m
Underlying NPAT
(FY 23: $93m)
AMP Bank
Strategic progress in 2024
Select enhancements to existing Bank proposition
—
New loan origination solution for brokers: fast‑track
time to approval, improved verification processes
and fraud detection
—
Faster mortgage settlement process that improves
customer communication
—
Ongoing enhancements to anti scam & fraud
protection measures
Ongoing management of volumes/margins
—
Focused on higher margin customer segments including
investor loans
—
Reduced reliance on price to attract new
business. Simplified documentation requirements
for business owners
—
Active management of pricing on existing deposit offerings
Disciplined cost management
—
Controllable costs reduced 11.3% to $118m
—
Expanded offshore partnership, uplifting capacity
and efficiency
—
Simplified operating model and implemented agile
change delivery model
18
FY 24 performance
Underlying NPAT was $37 million (FY 23: $34 million).
AUM-based revenue increased slightly to $91 million (FY
23: $88 million), and diversification of revenue continued
with 35% of revenue coming from non-AUM business lines.
Controllable costs reduced to $34 million (FY 23: $36
million), despite ongoing inflation in this market.
Net cashflows grew 17.2%, with improved retention in corporate superannuation
despite a highly competitive market and challenging economic environment.
FY 24 performance
Group earnings improved with NPAT (underlying) loss of
$47 million in FY 24, reduced from $65 million loss in FY 23.
This was predominantly driven by an improvement in Other Partnership earnings,
which increased 68.4% as US real estate valuations within the PCCP sponsor investment
improved following a challenging FY 23. The contribution from China partnerships of
$47 million (FY 23: $39 million) reflects China Life Pension Company earnings normalising
following regulatory changes impacting the 2H 23 result.
Cost out initiatives reduced Group controllable costs by 9.8%, which included absorbing
inflationary pressures and previously announced stranded costs. The reduction in
investment income (down 46.9%) reflects lower capital levels given the capital returned
to shareholders as part of Tranche 3 of the capital management program.
$37m
Underlying NPAT
(FY 23: $34m)
$47m loss
Underlying NPAT
(FY 23: $65m loss)
New Zealand Wealth Management
Group
Strategic progress in 2024
Improved investment performance
—
Change in investment strategy and delivery
driving above-market average returns for
1-3 years
Diversification of revenue and launch
of new products to address retiree
outflows
—
Increased coaching capability through
enable.me to diversify revenue and create
an integrated and differentiated offer in
the market
—
Launched term deposit product to
widen offer for those approaching and
in retirement
Growth in KiwiSaver inflows
—
Up 3.9% to NZ$726m; personalised retention
activity launched to reduce outflows
New brand campaign
—
Maintaining brand awareness and brand
consideration. Customer satisfaction
remains high at 8.7
19
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Managing our
key risks
Material risks
Enterprise Risk Management framework
Effective risk management is fundamental to
understanding and responding to changes in
AMP’s operating environment, enabling us to
achieve our purpose and strategic objectives.
Risk management is a responsibility of all AMP
employees and is reflected in AMP’s values – put
customers first, own it, be brave, do the right
thing, and play as one team.
AMP’s risk management framework provides the
foundation for how risks are managed across
AMP and enables AMP to meet its legislative
and regulatory requirements, codes, and
ethical standards, as well as internal policies
and procedures. It includes the following
key components:
—
Strategy and business plans covering
the whole of AMP
—
Risk management strategy
—
Risk appetite statement
—
Supporting policies and practices
—
Risk culture and performance
management
By establishing the principles, requirements,
roles, and responsibilities for management
of risk across AMP, the framework ensures all
employees have clarity on how risks are to
be managed to fulfil the obligations to key
stakeholders, including customers, shareholders
and regulators.
AMP continues to focus on maintaining
an appropriate risk culture, aligned to
AMP’s purpose and values. Risk culture is
measured biannually, with results provided
to the board, and focus areas identified with
clear action plans.
The risk appetite statement articulates the level
of risk the board is willing to accept to ensure the
effective delivery of AMP’s strategic objectives.
There is clear alignment between AMP’s
corporate strategy and the risk appetite of the
AMP Limited Board, to ensure that decisions
made are consistent with the nature and level
of risk the board and management are willing
to accept.
AMP’s approach to achieving its strategic objectives
is to take measured risks within our risk appetite.
AMP has a clear strategic plan to drive our business
forward and an Enterprise Risk Management
framework to identify, measure, control, and
report risks.
20
Key business challenges
AMP is focused on delivering on its strategy, and in doing
so remains conscious of various challenges affecting the
financial services industry. These include, but are not limited
to, the following (listed in alphabetical order):
Business, employee and
business partner conduct
The conduct of financial institutions remains an area
of significant focus for the financial services industry
both globally and in Australia and New Zealand. AMP
devotes significant effort to ensure that our business
practices, management, staff or business partner
behaviours adequately meet the expectations of
customers, regulators and the broader community,
and do not result in an adverse impact on our
reputation and value proposition to customers.
Our Code of Conduct outlines how AMP seeks to
conduct its business and how it expects people to
conduct themselves. The principles that define the high
standards outline the behaviour and decision-making
practices, including how we treat our employees,
customers, business partners and shareholders. We are
committed to ensuring the right culture is embedded in
our everyday practices.
AMP embraces a safe and respectful work
environment that encourages our people to
report issues or concerns in the workplace.
Directors, employees (current and former),
contractors, service providers or any relative
or dependents of any of these people can
utilise AMP’s whistleblowing program to report
conduct or unethical behaviours.
Climate change
AMP, its customers and its external suppliers may be
adversely affected by physical and transition risks
associated with climate change. These effects may
directly impact AMP and its customers through a range
of physical, financial and legal risks to our business, the
investments we manage on behalf of our customers and
the wider community.
Initiatives to mitigate or respond to adverse impacts of
climate change may in turn impact market and asset
prices, economic activity, and customer behaviour,
particularly in geographic locations and industry
sectors adversely affected by these changes.
AMP’s approach to managing climate-related
risks and opportunities is detailed in AMP’s
annual Sustainability report. This includes
quantitative and qualitative methods to
manage climate-related risks of our investment
practices and measuring the scope 1, 2 and
3 emissions associated with operational,
lending and investment activities. AMP has
been carbon neutral across its operations
since 2013 to address the direct impacts of
our business activities.
21
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Material Risks
Competitor
and customer
environment
The financial services industry, as
well as the community in Australia
and New Zealand more broadly,
have faced various challenges
throughout 2024, including natural
disasters, economic uncertainty,
and high interest rates. Throughout
the year AMP supported customers
in a number of ways, including
providing protection for bank
customer and superannuation
members at risk of financial abuse
and experiencing vulnerability.
Customer expectations are
evolving which is intensifying
competition within banking and
wealth management. Furthermore,
as economic uncertainty prevails,
it is affecting the performance of
assets under management across
the industry. AMP continues to
adapt its capabilities and operating
model to remain competitive and
relevant to customers.
In 2024, AMP continued to
deliver on its strategy to
reposition AMP as a simpler,
purpose-led, customer-
focused business in its core
markets of banking and
wealth management. Notable
developments included
creating a partnership and
ownership structure with
Entireti Limited and AZ Next
Generation Advisory Limited
for the AMP Advice business
and the employee launch of
a new digital bank designed
for small business.
Cyber security threats,
fraud and scam threats
Cyber risks, fraud and scams remain
major threats in a continuously evolving
digital landscape. AMP is dedicated to
enhancing its response to these risks by
preventing, detecting, and addressing
cyber incidents promptly. We also
monitor potential fraud and scams and
address them as early as possible.
AMP aligns its cybersecurity practices
with the National Institute of Standards
and Technology NIST cybersecurity
framework. This alignment ensures a
comprehensive approach to managing
and mitigating cybersecurity risks.
Continuous improvement is a cornerstone
of AMP’s cybersecurity capabilities. We
regularly review and update our cyber
defence protocols to adapt to emerging
threats and technological advancements.
Through ongoing assessments and
improvements, we aim to stay ahead
of potential risks and ensure the
highest level of security for our clients
and stakeholders.
AMP’s Cyber Defence Centre
employs best practices, advanced
technologies, and intelligence sharing
with the Australian Government and the
industry to bolster cyber defences and
situational awareness.
We also recognise the importance
of employee education for securing
customer data and ensure regular cyber
security seminars are conducted for
all AMP staff awareness.
AMP continues to strengthen its
framework to prevent, detect and
respond to frauds and scams.
During 2024, AMP updated its Fraud
Policy and continued to enhance
and implement its anti-scam
strategy. AMP Bank, aligned to the
Australian Bankers Association
Scam-Safe Accord, has committed
to a range of anti-scam measures to
help protect our customers and the
broader community from scammers.
Operational risk
environment
Operational risk exposures for
AMP relate to losses resulting
from inadequate or failed internal
processes, people and systems
or from external events. These
include, but are not limited
to, information technology,
human resources, internal and
external fraud and scams, money
laundering and counter-terrorism
financing, bribery, and corruption.
This environment will be further
stressed by the other key business
challenges included in this section.
We are committed to
mitigating operational risk
by reducing operational
complexity and strengthening
risk management, internal
controls, and governance.
We continue simplifying
superannuation products and
investment options, and our
corporate structure.
The AMP operational
risk profile reflects these
exposures, and the
financial statements of AMP
contain certain provisions
and contingent liability
disclosures for these risks in
accordance with applicable
accounting standards.
22
Organisational
change
Changes were made throughout
the year to continue to simplify the
operating model of the business.
There is always a risk that
business momentum is lost
while organisational change
is implemented. There is a risk
that the extended period of
change may have an adverse
impact on employees causing a
strain to deliver on our strategy
and transformation initiatives.
These risks will be mitigated
by maintaining leadership and
performance focus on the business.
AMP continues to invest
in adopting new ways of
working to drive efficiency
and improve its practices
to increase accountability
and build on core strengths.
We recognise that failure to
execute appropriately on
the implementation of these
changes can increase the
risks of disruption to AMP’s
business operations.
Regulatory
environment
AMP operates in Australia and New
Zealand, with their own legislative
and regulatory requirements. AMP
continues to anticipate upcoming
changes to these requirements.
AMP continues to respond and
adjust its business processes for
any changes. However, failure to
adequately anticipate and respond
to future regulatory changes could
have a material adverse impact on
the performance of its businesses
and achieving its strategic
objectives. AMP is committed to
continually strengthening its risk
management practices, its control
environment and enhancing its
compliance systems across its
businesses. AMP’s internal policies,
frameworks and procedures
seek to ensure any changes in
our regulatory obligations are
complied with. Compliance, legal
and regulatory risk that results
in breaches is reported to AMP
management committees and
regulators. This is managed in
accordance with internal policies.
Regulatory consultations and
interactions are reported and
monitored as part of AMP’s
internal risk and compliance
reporting process. AMP actively
participates in these interactions
and cooperates with all regulators
to resolve such matters.
On Friday 2nd of August 2024, the
Australian Prudential Regulation
Authority (APRA) removed
additional licence conditions
imposed on N.M. Superannuation
Proprietary Limited (N.M. Super) in
response to governance and risk
management concerns. APRA also
considered that the requirements
of the Court Enforceable
Undertaking entered into by
N.M. Super had been met.
More information
about our approach
to these challenges
can be found
on our website
at: amp.com.au/
about-amp/what-
we-do/corporate-
sustainability.
Significant changes
to the state of affairs
Apart from as
elsewhere disclosed in
this report, there were
no other significant
changes in the state
of affairs during the year.
23
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Our approach
to governance
Chair succession & board renewal
Mike Hirst was appointed as Chair of AMP, effective April
2024, following the retirement of Debra Hazelton, who had
served as Chair of AMP since August 2020. Kathleen Bailey-
Lord and Anna Leibel commenced their appointments as
AMP non-executive directors in January 2024. Changes
to board committee Chairs include the appointment
of Andrew Best as Chair of the Risk and Compliance
committee, effective May 2024 and Kathleen Bailey-
Lord as Chair of the Remuneration committee, effective
November 2024.
Sustainability and ESG performance
In 2024, AMP Limited was included in the Dow Jones
Sustainability Index (DJSI) Australia for the third year in a
row. The index tracks the performance of the top 30% of
the 200 listed Australian companies in the S&P/ASX 200
that lead the field in terms of sustainability
Strategy
The board oversaw management’s strategy
implementation, which in 2024 included the sale of AMP’s
Advice business; the delivery of AMP’s new digital bank for
small business and personal banking; driving momentum
in our wealth businesses to position AMP as a retirement
specialist; and the completion of the $1.1 billion capital
return to shareholders.
Inclusion and Diversity
AMP is committed to creating an environment which
empowers people to be their authentic selves and is
reflective of AMP’s customers and community. In 2024 AMP
achieved gender balance targets of 40:40:20 across the
board, executive management, middle management and
the organisation overall, with ‘head of’ level achieving
39.6% female representation. In addition, AMP delivered
against key actions outlined in the 2024 inclusion and
diversity strategy including enhanced training to drive
awareness, and published company gender pay gap and
performance against key gender equity indicators.
Culture, conduct & ethical behaviour
In building a high-performance culture anchored to AMP’s
purpose and values, AMP took steps in 2024 to further
embed existing performance and recognition programs,
driving greater accountability and shared celebration of
purpose and values in action. People policies were also
refreshed to further reinforce the expected behaviours in
line with AMP’s values and code of conduct. This included
consequence management and workplace respect, and the
enhancement of the sexual harassment policy through the
introduction of a standalone policy.
Risk culture
AMP continues to focus on maintaining an appropriate risk
culture, where ‘Respect Risk’ is everyone’s business. It is the
accountability of the board to enable this through approval
and oversight of the risk management framework, risk
appetite statement and risk management strategy; setting
a strong tone from the top, role-modelling robust risk
management and establishing the right expectations; and
monitoring the effectiveness and implementation of the risk
culture framework.
→ To read more about AMP’s approach to corporate
governance, please see the 2024 Corporate
governance statement
The board of AMP believes high standards of corporate
governance are essential to achieving AMP’s purpose of
helping people create their tomorrow, and creating value and
sustainable outcomes for AMP’s shareholders, customers and
the communities in which AMP operates. As the board oversees
AMP’s progress against its strategy, the board’s commitment to
governance was demonstrated in a number of key areas in 2024:
Governance
24
AMP’s governance framework provides clear separation of the board’s
oversight functions from the executive responsibilities and accountability of the
CEO and AMP’s leadership team, the executive committee. This framework is
supported by AMP’s constitution, internal policies, charters, standards and
procedures which facilitate this separation of responsibilities. An overview of
AMP’s corporate governance framework is depicted below.
Managing Director and CEO
Responsible for the day-to-day
management of the AMP group
and the implementation of our
strategic objectives
AMP Limited Board of Directors
(Including Chief Executive Officer)
Oversees management of AMP
for shareholders and approves
the strategic plan
AMP Limited Shareholders
AMP Limited Board Committees
Audit Committee
Oversees financial reporting and
internal and external audit functions
Nomination Committee
Oversees board and
committee membership
and succession planning
Remuneration Committee
Oversees key remuneration
and people policies and practices
Risk and Compliance
Committee
Oversees current and
future risk management
AMP Limited Executive Committee
Responsible, with the CEO, for
executing AMP’s strategic objectives
and managing and conducting the
AMP group’s operations
AMP Limited Employees
Company
Secretary
Responsible
for the proper
functioning of
the board
Delegated Authority
Delegated Authority
Accountable to Board
Accountable to Shareholders
Accountable to Board
AMP Limited Constitution, Charters, Policies and Standards
AMP’s purpose and values
25
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Mike was appointed to the AMP Limited Board as a Non-executive director in July 2021 and
as its Chair and the Chair of the AMP Bank Board in April 2024. He was also appointed as
the Chair of the Nomination Committee in April 2024 and was the Chair of the AMP Limited
and AMP Bank Risk and Compliance Committee from October 2022 until April 2024 and
remains a member. Mike is also a member of the Remuneration Committee.
Experience
Mike has more than 40 years of experience in board and senior executive leadership
roles within retail banking, treasury, funds management and financial markets. Mike was
the Managing Director and Chief Executive Officer of Bendigo and Adelaide Bank from
2009 to 2018 and prior to this, he worked in senior executive and management positions
with Colonial Limited, Westpac Banking Corporation and Chase AMP Bank. Mike served as
Deputy Chair of the Treasury Corporation of Victoria and previously held non-executive
directorships with Austraclear Limited, Colonial First State, Rural Bank and Barwon Health
Limited. Mike was a Commissioner on the Federal Government’s National COVID-19
Commission Advisory Board, a member of the Federal Government’s Financial Sector
Advisory Council and was Deputy Chair of the Australian Banking Association.
Directorships of other ASX listed companies
—
Non-executive director, AMCIL Limited (appointed January 2019)
—
Non-executive director, Butn Limited (September 2020 – February 2024)
Directorships of other companies
—
Non-executive director, GMHBA Limited (appointed July 2018)
—
Non-executive director, Adelaide Airport Limited (appointed September 2023)
Government and community involvement
—
Honorary Member, Business Council of Australia (appointed July 2018)
Mike Hirst
BCom, SFFin,
MAICD
Independent Chair
Alexis was appointed Chief Executive Officer (CEO) of AMP Limited in August 2021. She
is responsible for leading the AMP business. Alexis was appointed to the AMP Limited
Board and AMP Bank Board in August 2021. In addition, Alexis was appointed to the AMP
Foundation Board in March 2022, and as Chair in June 2024.
Experience
Alexis has more than 30 years’ experience in the financial services industry in Australia
and overseas. She spent seven years at ANZ, including most recently as the Deputy Chief
Executive Officer, working with the CEO to drive group-wide strategic initiatives in addition
to having responsibility for its shared service centres and banking services. As the Group
Executive Wealth Australia, Alexis led ANZ’s ~$4 billion wealth divestment program, including
the separation and sale of its life insurance and superannuation businesses to Zurich and
IOOF. Prior to ANZ, Alexis spent 10 years with ING Group in a number of senior roles, including
CEO Czech Republic and Slovakia, responsible for banking, insurance and funds management,
and Regional COO Asia, responsible for product, marketing, technology and operations.
Directorships of other ASX listed companies
—
None
Government and community involvement
—
Member, Chief Executive Women Australia (appointed October 2016)
—
Member, Australian Bankers Association Council (appointed August 2021)
—
Deputy Chairman, Financial Services Council Board (appointed as a Member
in September 2023, and as Deputy Chairman September 2024)
Board of directors
Alexis
George
BCom, FCA, GAICD
Chief Executive
Officer
26
Andrew was appointed to the AMP Limited Board as a Non-executive director in July 2022.
He was appointed as the Chair of the Risk and Compliance Committee in May 2024 and is a
member of the Nomination and Remuneration Committees. At the same time as joining the
AMP Limited Board, Andrew was appointed to the AMP Bank Board and is Chair of its Risk
and Compliance Committee.
Experience
Andrew is a senior financial services executive with over 30 years’ international and domestic
experience across banking and financial markets in Australia, London, Hong Kong and
Singapore, with a particular focus on capital markets and mergers and acquisitions. From
1989 to 2020, Andrew worked with J.P. Morgan Chase & Co holding various roles over his
three-decade career with the company, including most recently as Head of Investment
Banking for Australia and New Zealand from 2017 to 2020. Prior to that role, Andrew was
Head of the Financial Institutions investment banking business for Australia and New Zealand
from 2004. Andrew is a member of the Ord Minnett Private Opportunities Fund Investment
Committee, a panel member for Adara Group, which provides independent pro bono advice
to Australian companies as well as being an executive coach with Foresight Global Coaching.
Directorships of other ASX listed companies
—
None
Government and community involvement
—
Member, National Heart Foundation Advisory Board (appointed April 2020)
Andrew Best
BLaws, BSc, MAICD
Independent,
Non-executive
director
Kathleen was appointed to the AMP Limited Board as a non-executive director in January
2024 and is the Chair of the Remuneration Committee and a member of the Nomination
Committee. At the same time as joining the AMP Limited Board, Kathleen was appointed
to the AMP Bank Board.
Experience
Kathleen has over 25 years’ experience in board and senior executive leadership roles
across diverse industry sectors including financial services, technology, utilities and
education. Kathleen was the Group General Manager, Global Shared Services of Australia
and New Zealand Banking Group (ANZ) from 2008-2013 and prior to this she was the Chief
Executive Officer of The Fordham Group and held senior executive management positions
with PMP Ltd, Phillips Fox Lawyers (now DLA Piper) and IBM Australia and New Zealand.
Directorships of other ASX listed companies
—
Non-executive director and Chair, Janison Education Group Limited (appointed
February 2022 and as Chair, October 2023)
Directorships of other companies
—
Non-executive director, Datacom Group Limited (appointed April 2022)
Government and community involvement
—
Member, Chief Executive Women (appointed January 2009)
—
Australian Institute of Company Directors, Non-Executive Director (appointed Dec
2024), Victorian Councillor (appointed 2017) and Victorian President (elected 2024),
Member of Technology Governance & Innovation Advisory Panel (appointed 2018)
—
Non-executive director, St Vincent’s Health Australia Limited (appointed April 2023)
—
Independent External Advisor, Bain & Company Advisory Council (appointed January 2025)
Kathleen
Bailey-Lord
BA(Hons), FAICD
Independent,
Non-executive
director
27
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Board of directors
Anna was appointed to the AMP Limited Board as a non-executive director in January 2024
and is a member of the Nomination and Risk and Compliance Committees. At the same time
as joining the AMP Limited Board, Anna was appointed to the AMP Bank Board and its Risk
and Compliance Committee.
Experience
Anna’s experience spans private and public boards and senior executive leadership
positions across a wide spectrum of highly regulated and asset-intensive service sectors
such as financial services, telecommunications, infrastructure and healthcare. Anna was the
Chief Delivery and Information Officer (2019–2021) and Chief Information Officer (2017–2019)
at UniSuper and has also held senior executive roles with PwC and Telstra.
Directorships of other ASX listed companies
—
None
Directorships of other companies
—
Non-executive director, Secure Electronic Registries Victoria (SERV)
(appointed September 2021)
Government and community involvement
—
Member, Chief Executive Women Australia (appointed November 2024)
Anna Leibel
LLM (EntGov),
GDipITLdshp,
GAICD, GCB.D
(ESG)
Independent,
Non-executive
director
Rahoul was appointed to the AMP Limited Board as a Non-executive director in January 2020.
He served as Chair of the Risk Committee from May 2020 to October 2022. He was appointed
the Chair of the Audit Committee in October 2022 and is a member of the Nomination and Risk
and Compliance Committees. At the same time as joining the AMP Limited Board, Rahoul was
appointed to the AMP Bank Board and is Chair of its Audit Committee and a member of its
Risk and Compliance Committee.
Experience
Rahoul has over 40 years’ experience in professional services, advising complex multinational
organisations in Australia and overseas. Rahoul is a member of the Audit and Risk
Committee of Minter Ellison’s Partnership Board. Between 2018 and 2021, he was Partner
and National Leader of Minter Ellison’s financial services practice in Australia and leader
of the risk consulting practice. Prior to this, Rahoul was a Senior Partner in PwC Australia
(1989 - 2012) and subsequently PwC Canada (2012 - 2017), serving for a total of almost 30
years. During this time, he held a number of leadership roles, delivering audit, assurance and
risk consulting services to major financial institutions in Australia, Canada and the United
Kingdom. Rahoul is also a member of the Advisory Committee for Genpact Australia Pty Ltd.
Directorships of other ASX listed companies
—
None
Government and community involvement
—
Member, Reserve Bank of Australia, Audit Committee (appointed February 2018)
—
Member, Loreto Kirribilli, Finance and Risk Committee (appointed February 2024)
Rahoul
Chowdry
BCom, FCA
Independent,
Non-executive
director
28
Andrea was appointed to the AMP Limited Board as a Non-executive director in February
2019 and is a member of the Audit, Nomination and Risk and Compliance Committees.
At the same time as joining the AMP Limited Board, Andrea was appointed to the AMP
Bank Board and is a member of its Audit and Risk and Compliance Committees. In addition,
Andrea was also appointed to the AMP Foundation Board in March 2022.
Experience
Andrea has over 30 years’ experience in Board and executive leadership roles in financial
services, retirement and superannuation, professional advisory, clean energy, investments
and education. Andrea was the co-founder, managing director and CEO of the SMSF
Association from 2003 to 2017. Prior to this, Andrea was a financial adviser and Principal
of her own tax consulting and advisory business.
Andrea’s previous Government Advisory Committee appointments include the Federal
Government’s Innovation Investment Partnership, Industry Working Group, Stronger
Super Peak Consultative Group, Superannuation Advisory Group and the Future of
Financial Advice.
Directorships of other ASX listed companies
—
Non-executive director, Argo Global Listed Infrastructure (April 2015 – June 2022)
Directorships of other companies
—
Non-executive director, Infrabuild Ltd (December 2022 – November 2024)
Government and community involvement
—
Non-executive director, Clean Energy Finance Corporation (appointed February 2018)
—
Deputy Chair, Woomera Prohibited Area Advisory Board (appointed July 2019)
—
Member, Global Competent Boards (appointed November 2021)
—
APAC Co-Chair, Harvard Business School, Women Executives on Boards (appointed 2024)
—
Member, Chief Executive Women Australia (appointed January 2017)
Andrea
Slattery
BAcc, MCom, FCPA,
FCA, FSSA, FAICD,
GCB.D (ESG & S)
Independent,
Non-executive
director
Michael was appointed to the AMP Limited Board as a Non-executive director in March
2020. He is a member of the Audit, Nomination and Remuneration Committees and was
previously the Chair of the Remuneration Committee between August 2020 and October
2024. At the same time as joining the AMP Limited Board, Michael was also appointed
to the AMP Bank Board and is a member of its Audit Committee.
Experience
Michael has over 35 years of professional experience, with significant experience in senior
executive financial and commercial roles. His experience as Chief Financial Officer spans
over 20 years in ASX Listed companies as well as the public sector. Michael is also Chair
of Sigma Healthcare and has served on numerous private boards since 2010.
Directorships of other ASX listed companies
—
Non-executive director and Chair, Sigma Healthcare Limited
(appointed February 2020 and Chair in August 2022)
Directorships of other companies
—
Non-executive director of GMHBA Limited (appointed October 2023)
Michael
Sammells
BBus, FCPA, GAICD
Independent,
Non-executive
director
29
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Group Executive
Committee
Alexis was appointed Chief Executive Officer (CEO) of AMP Limited in August 2021.
She is responsible for leading the AMP business. Alexis was appointed to the AMP Limited
Board and AMP Bank Board in August 2021. In addition, Alexis was appointed to the AMP
Foundation Board in March 2022, and as Chair in June 2024.
Experience
Alexis has more than 30 years’ experience in the financial services industry in Australia
and overseas. She spent seven years at ANZ, including most recently as the Deputy Chief
Executive Officer, working with the CEO to drive group-wide strategic initiatives in addition
to having responsibility for its shared service centres and banking services.
As the Group Executive Wealth Australia, Alexis led ANZ’s ~$4 billion wealth divestment program,
including the separation and sale of its life insurance and superannuation businesses to Zurich and
IOOF. Prior to ANZ, Alexis spent ten years with ING Group in a number of senior roles including
CEO Czech Republic and Slovakia, responsible for banking, insurance and funds management,
and Regional COO Asia, responsible for product, marketing, technology and operations.
Alexis is a member of the Institute of Chartered Accountants and a graduate of the Australian
Institute of Company Directors. Alexis is an active member of Chief Executive Women and
is a passionate advocate for women in leadership roles. She is a member of the Financial
Services Council Board and the Australian Bankers Association Council.
Alexis George
BCom, FCA, GAICD
Chief Executive
Officer
David joined AMP in September 2004 and was appointed Group General Counsel in May
2018. David has group-wide responsibility for AMP’s legal and governance functions.
Experience
David has over 30 years’ experience in the legal profession, with extensive experience in
the areas of M&A, corporate law and corporate governance, having worked in law firms
in Perth and Sydney and with the ASX. Prior to his appointment as Group General Counsel,
David was the Group Company Secretary and General Counsel, Governance at AMP, which
included acting as Company Secretary for AMP Limited.
David holds a Bachelor of Commerce and Bachelor of Laws from the University of WA and
a Master of Laws from the University of Sydney. He is a Fellow of the Governance Institute
of Australia.
David Cullen
BCom, LLB, LLM
Group General
Counsel
Blair joined AMP in 2009 and took up the role of Chief Financial Officer in July 2023.
Experience
Blair was previously CEO/Managing Director of New Zealand Wealth Management from
January 2017, and prior to this served as AMP’s Director Retail Financial Services; Director
of Advice & Sales and General Manager Marketing and Distribution. Blair has over 30 years’
experience across the financial services sector in New Zealand and Australia.
From August 2020 to January 2021, Blair also served as Acting CEO for AMP Australia,
where he was responsible for AMP’s wealth management and banking divisions with
a focus on strengthening client-led outcomes.
Blair Vernon
BBS
Chief Financial Officer
30
Melinda was appointed Group Executive Superannuation and Investments in January
2024, joining from KPMG where she led the Actuarial and Data Analytics team. She
leads the Superannuation (AMP Super) business which serves personal and corporate
super members. She also leads AMP Investments and AMP New Zealand.
Experience
Melinda has deep expertise in superannuation with more than 30 years in the industry.
She also has experience in wealth management, life insurance, general insurance and
not for profit organisations, including as CEO of the Actuaries Institute and Policy
Director at ASFA.
Having spent eleven years at BT Financial Group in the 1990–2000’s, Melinda rejoined
as Managing Director, Superannuation in 2014 and until 2022 led the transformation
and simplification of BT’s complex heritage superannuation business to a modern
digital enterprise.
Melinda is an actuary and is a Fellow of the Institute of Actuaries of Australia. She has
executive and non-executive director experience and is a graduate of the Australian
Institute of Company Directors. She has been an active member of industry bodies
ASFA and the FSC over many years, including serving on ASFA’s board and the FSC
superannuation board committee.
Melinda Howes
BEc, FIAA, GAICD
Group Executive,
Superannuation
and Investments
Edwina was appointed Group Executive Platforms in July 2023. The Platforms
business provides superannuation, retirement and investment solutions to
advisers and their clients.
Experience
Edwina is a seasoned executive, board director, consultant, and transformational
leader having held senior executive roles across wealth management; superannuation
and funds management businesses. In June 2021, Edwina was appointed Director,
Platforms at AMP, with end-to-end accountability for AMP’s Wealth Superannuation
Fund, Wrap Platforms and SuperConcepts SMSF business (which was sold on
30 June 2023).
Previously, Edwina led AMP Capital’s Global Product function, responsible for its
Managed Investment Schemes, offshore domiciled funds and separate accounts.
Before AMP, Edwina held various senior leadership roles at Perpetual Investments
responsible for strategy; business development; product innovation and management
functions. She was also a management consultant with Accenture specialising
in wealth management and began her career as a lawyer with DLA Piper (then
Phillips Fox).
Edwina holds a Bachelor of Laws (QUT) and a Graduate Diploma in Applied Finance
& Investment (FINSIA). She is a Director of ASFA.
Edwina
Maloney
LLB, GradDip Applied
Finance & Investment
(FINSIA)
Group Executive,
Platforms
31
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Group Executive Committee
Rebecca was appointed the Chief People Officer in November 2021 and is responsible for
leading human capital strategy, employee experience, talent and succession, leadership,
performance, remuneration, recruitment, diversity and inclusion, cultural transformation
and employee development. Rebecca is also accountable for corporate communications
and sustainability, the AMP Foundation and Customer Dispute Resolution. Rebecca joined
AMP in April 2020 as Group Director People.
Experience
Rebecca has more than 25 years of local and global multi-sector experience. Prior to joining
AMP, she spent seven years at Perpetual as the Group Executive, People & Culture, where her
portfolio included sustainability and business transformation. During her time at Perpetual,
Rebecca served as a Director of Perpetual Trustee Company. Prior to Perpetual, Rebecca
held senior roles with National Australia Bank and Accenture. Rebecca is a graduate of the
Australian Institute of Company Directors, Stanford Business School and Harvard Business
School’s Women on Boards program (2018).
She holds a Bachelor of Business degree from the University of Technology, Sydney, and a
change management qualification from the Australian Graduate School of Management at
the University of New South Wales, Sydney.
Rebecca Nash
BBus, GAICD, GradCert
Chief People,
Sustainability and
Community Officer
Kavita was appointed Chief Technology Officer in January 2024, and is responsible for
leading the group’s technology strategy to ensure a digital first approach aligned to AMP’s
strategy of a simplified, customer-centric business.
Experience
Kavita is an accomplished technology leader with expertise in driving transformational
change to deliver strategic and commercial objectives. Kavita has more than 20 years’
experience across a variety of technology roles specialising in financial services, including
superannuation, investments, digital, data, cloud, lending, and corporate technology.
Prior to AMP Kavita was at AustralianSuper, where she held the roles of co-acting CTO
and Head of Enterprise Technology. At AustralianSuper she established and transformed
technology capabilities across investments, member experience, cloud infrastructure,
employee experience, data, and enterprise technology assets. Prior to this, Kavita held
various senior positions over 14 years at ANZ, including leadership roles within Home and
Business Lending technology. Kavita holds a Bachelor of Science from Maharaja Sayajirao
University of Baroda in India, and a Master of Information Management and Systems from
Monash University. Other qualifications and certifications include the Disruptive Strategy
Program (Harvard Business School); Digital Transformation Program (MIT Sloan Executive
Education); and Leading SAFe (Scaled Agile Framework).
Kavita Mistry
BSc, MIMS
Chief Technology
Officer
32
Sean was appointed the Group Executive of AMP Bank in September 2021. He is
responsible for the management and growth of AMP Bank, and for Marketing across
the group.
Experience
Sean joined AMP in May 2013 and has over 25 years of experience in delivering
enhanced business results, predominately in financial services industries. He has deep
and broad leadership experience, having performed multiple roles across the AMP
business, including as Director of AMP Contact Centres and Operations Transformation
with a focus on transforming the customer experience, and Director of AMP Direct,
where he designed the organisational structure and operating model of AMP’s direct-to-
client advice model. Sean joined the bank as Director of Technology and Operations in
2016, focused on leading capability and technology enhancements, and the Future AMP
Bank Core Program. In April 2021, Sean was appointed to Managing Director AMP Bank.
Sean is responsible for leading the bank, delivering its future growth strategy, uplifting
its digital capability and ensuring the ongoing delivery of high‑quality products and
services to customers.
Sean holds a Bachelor of Commerce from University of Wollongong and a Master
of Business Administration from University of Queensland.
Sean O’Malley
MBA, BCom, FIML
Group Executive,
AMP Bank
Nicola joined AMP in August 2019 and was appointed as Chief Risk Officer
in May 2022. Nicola has group-wide responsibility for AMP’s enterprise risk
management function.
Experience
Nicola has more than 25 years of experience in financial services. Nicola has extensive
experience of regulation, governance, risk, control and internal audit. Nicola has held
various roles in financial services organisations and regulators in Australia and the UK,
including ANZ and also Barclays and the FSA in the UK. Prior to her appointment as
Chief Risk Officer, Nicola was the Chief Audit Executive.
Nicola holds a Bachelor of Arts (Honours) from Middlesex University and a Masters
in Audit Management and Consultancy from the University of Central England.
Nicola Rimmer-
Hollyman
BA (Hons), MSc,
CMIIA, QAIP
Chief Risk Officer
33
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
About the Directors’ report
This directors’ report provides information on the structure and progress of our business, our 2024 financial
performance and our strategies and prospects for the future. It covers AMP Limited and the entities it controlled
during the year ended 31 December 2024. In addition to the information contained in this section, the following
information also forms part of the directors’ report:
— Information on directors (pages 26–29)
— Managing key risks (pages 20–23)
All figures are in Australian dollars ($) unless otherwise stated.
Operating and financial review
Principal activities
AMP Group provides banking, superannuation and retirement services in Australia and New Zealand.
For the purposes of this report, our business is divided into four operating business units: Platforms, Superannuation &
Investments, AMP Bank and New Zealand Wealth Management.
Platforms is a leading provider of superannuation, retirement and investment solutions, enabling advisers and their clients to
build a personalised investment portfolio on AMP’s flagship North platform. North is an award-winning online wrap platform
which continues to deliver on its commitment of strengthening and broadening investment choice for clients and providing a
contemporary platform for advisers to manage their clients’ funds.
Superannuation & Investments offers a market competitive super and pension solution across individual and corporate super
through one of the largest retail Master Trusts in Australia (SignatureSuper). The open investment menu caters to different risk
profiles with exposure to a range of professional managers in order to meet the needs and goals of customers.
AMP Bank offers residential mortgages, business financing, deposits and transactional banking services. The Bank continues to
focus on growth through its digital channels, improving the experience for both customers and intermediaries. AMP Bank helps
around 185,000 customers with their banking needs.
New Zealand Wealth Management provides clients with a variety of wealth management solutions including KiwiSaver,
corporate superannuation, retail investments and general insurance. It also provides financial advice and coaching under the
AdviceFirst and enable.me brands.
In addition to these operating business units, AMP also holds several partnerships and other retained interests including:
—
19.99% of China Life Pension Company (CLPC),
—
14.97% of China Life AMP Asset Management Company Ltd (CLAMP),
—
22.95% in US real estate investment manager, PCCP, LLC (PCCP), and
—
30.00% of Mutual Advice Partners Pty Ltd (a subsidiary of Entireti Limited, details below).
Partnership for Advice business
On 2 December 2024, AMP announced the completion of the Advice transaction creating a new partnership and ownership
structure with Entireti Limited (Entireti) and AZ Next Generation Advisory Limited (AZ NGA) for the AMP Advice business,
which had previously been announced on 8 August 2024. Entireti acquired AMP’s financial advice licensees: Charter Financial
Planning Limited, Hillross Financial Services Limited, AMP Financial Planning Pty Limited, as well as its self-licensed offer of
Jigsaw Support Services Pty Limited for $10.2m. AMP retains a minority interest of 30% in a new joint venture entity (Mutual
Advice Partners Pty Ltd) holding these four businesses. AZ NGA acquired AMP’s equity holdings in 16 financial advice practices
for $82.5m. The transaction has resulted in an accounting loss of $36m.
Directors’ report
for the year ended 31 December 2024
34
Review of operations and results
The profit attributable to the shareholders of AMP Limited for the full year ended 31 December 2024 was $150m (FY23: $265m).
Profit for the group and key performance metrics were as follows:
Profit ($m)
FY24
FY23
%FY
Platforms
107
90
18.9
Superannuation & Investments
67
53
26.4
AMP Bank
72
93
(22.6)
New Zealand Wealth Management
37
34
8.8
Group
(47)
(65)
27.7
NPAT (underlying)1
236
205
15.1
Items reported below NPAT
(87)
62
n/a
Discontinued operations
1
(2)
n/a
NPAT (statutory)
150
265
(43.4)
—
FY24 NPAT (underlying) of $236m was $31m higher than FY23 (FY23: $205m). This reflects improved Platforms earnings
(18.9%), improved Superannuation & Investments earnings (26.4%), improved New Zealand Wealth Management earnings
(8.8%) and an improvement in Group earnings (27.7%). This was partly offset by lower AMP Bank earnings (22.6%) which
reflects subdued volume growth as a result of prioritising margins.
—
FY24 NPAT (statutory) profit of $150m (FY23: $265m) includes $36m loss on sale of Advice business, recognition of certain
one-off costs, including business simplification costs, litigation and remediation related costs, permanent tax differences
and other one-off related impacts. FY23 was favourably impacted by a $245m net gain on sale of the AMP Capital and
SuperConcepts businesses.
Key performance metrics
FY24
FY23
Earnings
EPS – statutory (cps)
5.7
9.3
EPS – underlying (cps)
9.0
7.2
RoE – statutory
4.1%
6.7%
RoE – underlying
6.4%
5.2%
Volumes
– Platforms AUM ($m)
79,788
71,060
– Superannuation & Investments AUM ($m)
56,846
51,865
– New Zealand Wealth Management AUM ($m)
11,792
10,853
Total AUM ($b)
148.4
133.8
AMP Bank total loans ($m)
23,274
24,441
Controllable costs (pre-tax) and cost ratios1
Controllable costs ($m)
648
690
Cost to income ratio
63.8%
66.5%
1 FY23 has been re-presented to remove Advice discontinued operations.
—
Basic earnings per share on a statutory basis for the period ended 31 December 2024 was 5.7 cents (FY23: 9.3 cents). On
an underlying basis, earnings per share was 9.0 cents, an increase of 25.0% on FY23, driven by improved NPAT (underlying)
and the buyback of shares as part of the previously announced capital return program.
—
Underlying return on equity was 6.4% in FY24 (FY23: 5.2%). Total AUM across Platforms, Superannuation & Investments
and New Zealand Wealth Management of $148.4b in FY24 increased by $14.6b (10.9%) from FY23.
—
Group cost-to-income ratio improved to 63.8% in FY24 from 66.5% in FY23. AMP’s controllable costs were $648m,
$42m lower than FY23.
35
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
FY24 Business unit overview
Platforms
NPAT (underlying) of $107m increased by $17m (18.9%) on FY23, predominantly driven by higher AUM reflecting stronger market
conditions, improved cashflows and cost discipline.
Net cash inflows of $2.8b (FY23: $1.4b) increased by $1.4b on FY23 driven by higher inflows benefiting from continued
growth in Managed Portfolios. Higher pension payments (up 24% on FY23) are predominantly due to the increased minimum
drawdown rates from July 2023. AUM based revenue to average AUM of 45bps in FY24 was lower by 2bps compared to FY23
driven by AUM mix changes.
Average AUM of $75.4b was $7.4b (10.8%) higher than FY23, with continued growth in managed portfolios where AUM is
now $19.1b.
Superannuation & Investments
NPAT (underlying) of $67m increased by $14m (26.4%) on FY23 driven by higher investment income, lower variable costs and
continued cost discipline.
Net cash outflows of $1.0b improved from $6.4b in FY23 ($2.1b excluding the $4.3 billion mandate loss in FY23). This reflects
resilient inflows and improved outflows, driven by the renewed focus on the member proposition. AUM based revenue to
average AUM of 63bps in FY24 was 1bp lower compared to FY23.
AMP Bank
NPAT (underlying) of $72m decreased by $21m (22.6%) on FY23 predominantly reflecting subdued volume growth as a result of
prioritising margins, partly offset by lower costs. Correspondingly, net interest income decreased 13.7% and net interest margin
was down 16bps to 1.26%. AMP Bank’s return on capital in FY24 was 6.1%, down from 7.9% in FY23 driven by lower profit.
During the period, AMP Bank prioritised margin over growth, servicing around 185,000 customers and improved mortgage
turnaround times to an average number of 8.3 days to approval. AMP Bank continues to maintain a conservative approach to
lending: 90+ day arrears was 0.76%, and 45% of the portfolio is ahead of the mortgage repayments by more than three months.
New Zealand Wealth Management
NPAT (underlying) of $37m in FY24 increased by $3m (8.8%) on FY23. Favourable market conditions have driven 3.4% growth in
AUM based revenues and eased the impact of lower revenue due to FY23 divestment of legacy products. Other revenue in FY23
included one-off gains that are being offset in FY24 with the improvement in the distribution revenues and additional months of
financial coaching revenue.
Net cashflows of $150m in FY24 were $22m ahead of FY23.
Group
Group earnings improved with NPAT (underlying) losses of $47m, reduced from losses of $65m in FY23. This was predominantly
driven by an improvement in partnerships earnings of $79m which increased $21m on FY23, reflecting a stronger profit
contribution from the sponsor investment in PCCP, mostly from normalising of property valuations in the US and higher
China partnership earnings due to CLPC earnings normalising following regulatory changes impacting 2H23. Additionally,
the reduction in controllable costs and interest expense also contributed to the improvement in Group earnings. This was
partially offset by a reduction in investment income (down 46.9%), reflecting lower capital levels given the capital returned to
shareholders as part of Tranche 3 of the capital management program.
Capital, liquidity and dividend
Capital and liquidity
A number of operating entities within the AMP group of companies are regulated, including AMP Bank (an authorised deposit
taking institution), superannuation entities, and the Wealth businesses which have Australian Financial Services License (AFSL)
requirements. These companies are regulated by APRA and ASIC and are required to hold minimum levels of regulatory capital
and liquidity.
AMP group’s CET1 capital surplus as at 31 December 2024 was $139m (FY23: $300m), with the decrease reflecting profits made
(+$150m), benefits arising from net business activities, offset by on-market share buybacks (-$244m), the FY23 final dividend
(-$55m), the FY24 interim dividend (-$51m) and changes in interest rates affecting the cash flow hedge reserves which are
deducted from capital.
Dividend and capital return
In August 2022, AMP announced a $1.1billion capital management program to return excess capital to shareholders. On 10
October 2024, AMP Limited announced the completion of its on-market share buyback, concluding the capital return program.
The Board has resolved to declare a final dividend of 1.0 cent per share, 20% franked, and to target a dividend payout of 2.0 cents
per share per half through 2025, subject to economic conditions and other uses of capital.
Directors’ report
for the year ended 31 December 2024
36
Strategy and prospects
AMP is positioned to be a preeminent retirement specialist, giving Australians financial confidence in retirement. AMP’s strategy
is centered around the following priorities: .
—
Driving flows in Platforms: Growing new advisers using North and building its Managed Portfolios offer.
—
Executing on strategic initiatives in Superannuation & Investments: Launch of new retirement solution and digital advice
to drive direct acquisition and member retention.
—
Scaling the new digital bank: New digital bank launched, with the focus now on marketing initiatives and enhancing
features for customers. New digital bank designed to improve AMP Bank margins through expanded funding mix.
—
Leveraging AI opportunities: To achieve efficiencies for our people and improve experiences for our customers.
—
Delivering on cost control: Continued focus on maintaining cost control and ongoing business simplification. Successfully
absorbing inflation effects.
—
Driving value from partnerships: Continue to drive value from joint ventures and international operations.
The Environment
AMP is not subject to particular or significant environmental regulations. You can find out more about AMP’s broader
approach to sustainability in its 2024 Sustainability report at amp.com.au/about-amp/what-we-do/corporate-sustainability.
Events occurring after the reporting date
As at the date of this report and except as otherwise disclosed in this report, the directors are not aware of any other
matters or circumstances that have arisen since the reporting date that have significantly affected, or may significantly
affect, the group’s operations; the results of those operations; or the group’s state of affairs in future periods.
The AMP Limited Board of Directors
The directors of AMP Limited during the year ended 31 December 2024 and up to the date of this report are listed below.
Directors were in office for this entire period except where stated otherwise:
Current Non-executive Directors:
Mike Hirst (appointed Chair 12 April 2024)
Kathleen Bailey-Lord
Andrew Best
Rahoul Chowdry
Anna Leibel
Michael Sammells
Andrea Slattery
Executive Director:
Alexis George (Chief Executive Officer and Managing Director)
Former Non-executive Director:
Debra Hazelton (Chair) (retired 12 April 2024)
37
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Attendance at board and committee meetings
The AMP Limited Board met 16 times during the year ended 31 December 2024. In addition, the Chair and directors also attended
other meetings, including board committee meetings, special purpose committees and strategy sessions during the year.
The table below includes:
—
names of the directors who held office at any time during, or since the end of, the financial year; and
—
the number of board and committee meetings held during the financial year for which each director was a member of the
board or relevant board committee and eligible to attend, and the number of meetings attended by each director.
All directors may attend all board committee meetings even if they are not a member of the committee. The table excludes the
attendance of those directors who attended board committee meetings of which they are not a member.
Board/committee
AMP Limited
Board Meetings 1
Audit
Committee
Nomination
Committee
Remuneration
Committee
Risk and Compliance
Committee
Additional
Committees 7
Directors
Required
to attend Attended Required
to attend Attended Required
to attend Attended Required
to attend Attended Required
to attend Attended
Attended
Mike Hirst 2
16
16
–
–
4
4
6
6
7
7
–
Debra Hazelton 3
4
4
–
–
1
1
3
3
–
–
1
Kathleen Bailey-Lord 4
16
16
–
–
4
4
6
6
–
–
–
Andrew Best 5
16
14
–
–
4
4
6
6
7
7
–
Rahoul Chowdry
16
16
4
4
4
4
–
–
7
7
2
Anna Leibel
16
16
–
–
4
4
–
–
7
7
–
Michael Sammells 6
16
16
4
4
4
4
6
6
–
–
–
Andrea Slattery
16
16
4
4
4
4
–
–
7
7
1
Alexis George
16
16
–
–
–
–
–
–
–
–
2
1 Where board and committee meetings of AMP Limited and AMP Bank Limited were held concurrently, only one meeting has been recorded.
2 Mike Hirst was appointed as Board Chair and Chair of the Nomination Committee and retired as Chair of the Risk and Compliance Committee
on 12 April 2024. He remains a member of the Risk and Compliance Committee.
3 Debra Hazelton retired from the Board (and as Board Chair and Chair of the Nomination Committee) on 12 April 2024.
4 Kathleen Bailey-Lord was appointed as Chair of the Remuneration Committee on 1 November 2024.
5 Andrew Best was appointed as Chair of the Risk and Compliance Committee on 12 April 2024.
6 Michael Sammells retired as Chair of the Remuneration Committee on 1 November 2024, remaining as a member.
7 Additional committees were convened during the year on matters including financial results.
Company secretary details
Details of each company secretary of AMP Limited as at the date of this report, including their qualifications and experience,
are set out below.
David Cullen, Group General Counsel
BCom, LLB, LLM
David was appointed as the Company Secretary for AMP Limited on 4 March 2022. David joined AMP in September 2004
and was appointed Group General Counsel in May 2018. David has group-wide responsibility for AMP’s legal and governance
functions. Prior to his appointment as Group General Counsel, David was the Group Company Secretary and General Counsel,
Governance at AMP, which included acting as Company Secretary for AMP Limited.
Kate Gordon, Head of Corporate Governance
BA (Juris), LLB, LLM
Kate was appointed as the Company Secretary for AMP Limited on 4 March 2022 and is also secretary of several other AMP
group companies. Kate joined AMP as Senior Company Secretary & Senior Legal Counsel in June 2020. Kate has significant
experience in the legal profession with expertise in corporate governance, mergers & acquisitions, corporate and commercial
law. Before joining AMP, Kate worked at Henry Davis York (now Norton Rose Fulbright) and HWL Ebsworth Lawyers.
Directors’ report
for the year ended 31 December 2024
38
Indemnification and insurance of directors and officers
Under its constitution, the company indemnifies, to the extent permitted by law, all current and former officers of the company
(including the non-executive directors) against any liability (including the costs and expenses of defending actions for an
actual or alleged liability) incurred in their capacity as an officer of the company. This indemnity is not extended to current or
former employees of the AMP group against liability incurred in their capacity as an employee, unless approved by the AMP
Limited Board.
During, and since the end of, the financial year ended 31 December 2024, the company maintained, and paid premiums for,
directors’ and officers’ and company reimbursement insurance for the benefit of all of the officers of the AMP group (including
each director, secretary and senior manager of the company) against certain liabilities as permitted by the Corporations Act
2001. The insurance policy prohibits disclosure of the nature of the liabilities covered, the amount of the premium payable and
the limit of liability.
In addition, the company and each of the current and former directors, and a subsidiary of the company and each of the
company secretaries, are parties to deeds of indemnity, insurance and access. Those deeds provide that:
—
these officers will have access to board papers and specified records of the company (and of certain other companies);
—
for their period of – office and for at least 10 (or, in some cases, seven) years after they cease to hold office (subject to
certain conditions);
—
the company indemnifies the directors, and a subsidiary of the company indemnifies the secretaries, to the extent permitted
by law, and to the extent and for the amount that the relevant officer is not otherwise entitled to be, and is not actually
indemnified by another person;
—
the indemnity covers liabilities (including legal costs) incurred by the relevant officer in their capacity as a current or former
director or secretary of the company, or as a director or secretary of any AMP group company or an AMP representative
in relation to an external company; and
—
the company will maintain directors’ and officers’ insurance cover for the directors, to the extent permitted by law,
for the period of their office and for at least 10 years after they cease to hold office.
Indemnification and insurance of auditors
To the extent permitted by law, the Company has agreed to indemnify its auditor, Ernst & Young, as part of the terms
of its audit engagement agreement, against claims by third parties arising out of or relating to the audit or the audit
engagement agreement, other than where the claim is determined to have resulted from any negligent, wrongful or wilful
act or omission by or of Ernst & Young. No payment has been made to indemnify Ernst & Young during or since the financial
year ended 31 December 2024.
Remuneration disclosures
The remuneration arrangements for AMP directors and senior executives are outlined in the remuneration report which forms
part of the directors’ report for the year ended 31 December 2024. Directors’ and senior executives’ interests in AMP Limited
shares, performance rights and options are also set out in the remuneration report on the following pages.
39
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
To our shareholders
On behalf of the board, I present AMP’s
2024 Remuneration Report, my first as
Chair of the Remuneration Committee.
It is pleasing to note our results demonstrate
that streamlining our business operations
is delivering real value. Evidence of the
increased momentum of our strategic growth
initiatives was clear in our Platforms business
where we delivered strong growth in cash
flows in a very competitive market.
We remain dedicated to being a trusted
and dependable partner for our customers,
to ensuring regulatory compliance, and
fulfilling community expectations. It is
pleasing to see that the substantial progress
made in 2024 is evidenced by our financial
performance, improved reputation, and
strong customer satisfaction.
Remuneration
report
1
Remuneration at a glance
42
2
Remuneration strategy
and framework
45
3
Performance and
reward outcomes
52
4
Remuneration
governance and risk
management
59
5
Non-executive director
fees and shareholding
requirements
62
6
Statutory tables
63
7
Looking forward to 2025
69
In 2024, we maintained our
commitment to our customers,
enhanced our operational efficiency,
and broadened our digital banking
services, all while ensuring value
for our shareholders.
Remuneration report
Contents
40
Overview of 2024
Throughout 2024 we concluded our capital return
program, distributing the remaining portion of the
$1.1 billion to shareholders through on-market share
buybacks and the resumption of dividends, finalised
in October 2024 ($750 million of capital was returned
in 2022 and 2023, with $350 million returned in 2024).
We have made ongoing progress on simplifying the
portfolio, repositioning AMP’s core businesses in wealth
management and retail banking, completing the Advice
sale, and resolving some material class action matters.
This has allowed us to allocate resources towards future
focused customer initiatives such as building digital advice
for our superannuation customers, which will be launching
in 2025. Additionally, AMP successfully developed a new
digital bank launched to our employees in December 2024
with a public launch in 2025, delivering it within a year and
within budget. During these changes, AMP’s share price
increased by 71% in 2024, indicating increased confidence
in our future direction.
Key Management Personnel
In 2024, there were several changes to AMP’s leadership.
Debra Hazelton retired from the AMP Limited Board, and
Mike Hirst succeeded her as the new AMP Limited Chair.
In January, Anna Leibel and I joined the AMP Limited Board
and the AMP Bank Board as Non-executive directors.
Anna also became a member of the Nomination and Risk
and Compliance Committees. I joined the Nomination and
Remuneration Committees and was appointed Chair of the
Remuneration Committee in November 2024.
Performance
For the period ending December 2024, AMP Limited’s
performance result was assessed at 102.8% of the
scorecard target. Strong NPAT performance against
target for both underlying and statutory measures,
prudent expense management, and improvements in
net cashflows in our Superannuation & Investments
business was fundamental to this outcome. Strong results
were also achieved in customer and employee satisfaction,
on enhancing our positive reputation in the market, and
in effective risk management. Whilst our net cashflows
in our Platforms business were below plan, we did show
good year on year improvement in results.
2024 variable remuneration outcomes
The board reviewed the scorecard result of 102.8%, taking
into consideration stakeholder feedback, the economic
and operating environment, and shareholder experience
during the performance year. On reflection, the board
has approved the Short-Term Incentive (STI) pool funding
of 90%. This decision aims to recognise and incentivise
AMP’s key executives for their work on several strategic
items throughout the year to drive sustainable value
for shareholders. An overview of the STI performance
objectives and assessment is provided in section 3.2.
During 2024, several Long-Term Incentive (LTI) plans
were performance tested. The 2022 LTI plan and two
tranches under the CEO’s sign-on award granted in August
2021 were performance tested. The 2022 LTI plan met the
performance criteria for relative total shareholder return
(TSR). Consequently, the performance rights granted under
this plan will vest on schedule. For the CEO’s sign-on award,
the absolute TSR performance hurdle was satisfied for this
tranche of the award, with all performance rights vesting.
However relative TSR did not meet the minimum hurdle,
resulting in all performance rights lapsing for this tranche
of the award. Further details on the performance testing
and outcomes for these awards can be found in sections
3.4 and 3.5.
Looking forward to 2025
As we change the shape of the business through simplification
and growth via strategic initiatives, we seek to ensure our
remuneration framework remains appropriate. To support
the board, in 2024 we did an external review of the market
including the sentiment expressed by investors through
the 2024 AGM season. On balance, we concluded that the
maximum variable remuneration and STI opportunity levels
of our remuneration framework no longer aligns with AMP’s
operating scale and size. To address this the board decided
to reduce the maximum STI opportunity for the CEO and
executive team from 200% to 150% of fixed remuneration
effective from 1 January 2025. For the Chief Risk Officer,
the maximum opportunity reduces from 140% of fixed
remuneration to 105%.
The board is making changes to the LTI plan for the
2025 performance year. We will reduce the number of
performance assessment metrics from three to two. This
will occur by removing the Compound Average Growth
Rate (CAGR) of AMP’s adjusted EPS metric (35% in the 2024
LTI plan). We will increase the weighting of the relative Total
Shareholder Return (TSR) metric to 70% (from 35% in the
2024 LTI plan). This metric will have a gate of absolute TSR,
which needs to be above zero. The second metric, RepTrak,
is retained at a weighting of 30%. Further information will be
provided in the 2025 Remuneration Report.
We are committed to the principles of our remuneration
system incentivising our team to create sustainable value
for all stakeholders.
The board would like to thank our CEO, Executive team and
all AMP employees for their ongoing commitment to AMP
and hard work throughout the year. While there is still much
to accomplish, the team has continued to deliver against our
strategy during 2024, and we recognise the effort it has taken
to achieve these results.
We hope you find the report informative and always welcome
your feedback.
Kathleen Bailey-Lord
Chair, Remuneration Committee
41
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
This report details the remuneration framework and outcomes for Key Management Personnel (KMP) of AMP Limited for the
year ended 31 December 2024. It has been prepared and audited in accordance with the disclosure requirements of the
Corporations Act 2001.
1
Section
Remuneration at a glance
1.1
Key management personnel
The following Executive KMP and Non-executive directors are included in this report.
Name
Position
Term as KMP
Executive KMP
Alexis George
Chief Executive Officer
Full year
Sean O’Malley
Group Executive, AMP Bank
Full year
Nicola Rimmer-Hollyman
Chief Risk Officer
Full Year
Blair Vernon
Chief Financial Officer
Full Year
Non-executive directors
Mike Hirst
Chair
Full year; commenced as Chair on 12 April 2024 following
completion of the 2024 Annual General Meeting
Non-Executive Director
Until 11 April 2024
Kathleen Bailey-Lord
Non-Executive Director
Full year
Andrew Best
Non-Executive Director
Full year
Rahoul Chowdry
Non-Executive Director
Full year
Anna Leibel
Non-Executive Director
Full year
Michael Sammells
Non-Executive Director
Full year
Andrea Slattery
Non-Executive Director
Full year
Former Non-executive director
Debra Hazelton
Chair
Retired on 12 April 2024 following completion of the 2024
Annual General Meeting
1.2
Our remuneration framework
Our remuneration framework connects our purpose, values, strategic priorities, and shareholder experience by tracking progress
on key results, evaluating individual and team performance, and appropriately rewarding our employees. Our principles offer
flexibility to attract and retain talent, maintain competitiveness, and effectively reward performance.
Our purpose:
Helping people create their tomorrow
Our values:
Put customers first
Own it
Be brave
Play as one team
Do the right thing
Our
Remuneration
principles:
Market competitive
to attract the
right people
Reflect AMP’s
purpose and values
Differentiate for
performance and
adjust for risk
Linked to strategy
and sustainable
value creation
Balance interests
of customers, people
and shareholders
Remuneration report
42
1.3
2024 remuneration outcomes
Each year the board sets key performance objectives on the AMP scorecard aligned to key results areas. This includes clear
objectives, metrics and targets for each objective. Outcomes awarded under AMP’s remuneration framework reflect both
what is delivered in terms of measurable performance and how it is delivered including a risk overlay. Performance assessment
explicitly considers not only the strategic priorities delivered but also the visible demonstration of AMP’s culture, purpose,
values, and conduct expectations. Risk is integral to all aspects of the remuneration framework and the decision-making
process regarding remuneration outcomes, as detailed in section 4.
STI outcomes
Scorecard result
102.8%
Total incentive
pool
90%
Financial
Profitability
Weighting
% Achieved
Weighted outcome
30%
96.5%
28.9%
Strategy
30%
103.9% 31.2%
Non‑financial
Customer
10%
115%
11.5%
People
10%
97.5%
9.8%
Reputation
10%
114%
11.4%
Risk
10%
100%
10%
→ Refer to section 3.2 for further information
43
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
2022 LTI Plan update
RTSR
Performance period
Peer group
Ranking
1 Jan 2022
↓
31 Dec 2024
S&P/ASX 100
Financials
Ex A-REITS
76TH
Percentile
Performance rights are subject to a one-year restriction period from 1 January 2025,
vesting on 15 February 2026.
→ Refer to section 3.4 for further information
LTI performance
test outcome
100%
1.4
Actual remuneration realised by executive KMP in 2024
Under AMP’s 2024 remuneration framework, executives are eligible to receive a combination of fixed remuneration, STI
(delivered 60% in cash and 40% deferred in share rights, see Section 2.1) and LTI (delivered entirely in performance rights).
The table below details the actual remuneration received in 2024 for executives classified as KMP as of 31 December 2024,
along with the market value of any equity vested during 2024 awarded in prior years, either as deferred STI and/or LTI.
This information differs from the statutory remuneration table which presents remuneration in accordance with Australian
Accounting Standards. Statutory disclosures can be found in Section 6.1.
Executive KMP
Year
Fixed 1
remuneration
Cash STI
paid 2
Other cash
awards
paid 3
STI & other
equity
awards
vested 4
LTI equity
awards
vested 5
Other
benefits 6
Total
remuneration
received
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Alexis George
2024
1,715
948
–
301
359
1
3,324
2023
1,715
772
257
239
–
1
2,984
Sean O'Malley
2024
650
342
–
138
–
–
1,130
2023
637
272
90
115
–
–
1,114
Nicola Rimmer-
Hollyman
2024
600
252
–
35
–
–
887
2023
600
192
57
–
–
2
851
Blair Vernon 7
2024
925
492
–
323
–
20
1,760
2023
462
218
–
–
–
51
731
1
Fixed remuneration (FR) includes superannuation and salary sacrificed benefits and reflects the time in role during 2024.
2 Cash STI paid during the relevant year is based on outcomes related to the applicable year’s performance and reflected for the relevant
reporting period. Cash STI represents the 60% portion of the total 2024 STI awarded and due to be paid as cash in April 2025. The remaining
40% of the STI award is deferred as share rights which are granted in April 2025 and vesting in three tranches over three years.
3 As outlined in our 2022 Remuneration Report, the board withheld a portion of the 2022 cash STI, which was only to be released upon the
commencement of the second tranche of the capital return. The second tranche of capital return commenced from April 2023, therefore this
withheld amount was paid on April 2023 and is included in this column.
4 The value of vested equity awards is calculated based on the units which vested multiplied by the five-day volume weighted average price
(VWAP) up to and including the vesting date of each award. The amounts disclosed includes the portion of Alexis George’s sign-on awards
that vested during 2024, tranche 2 of the 2021 Deferred STI award, tranche 1 of the 2022 Deferred STI award and the 2019 Deferred STI award.
5 224,548 LTI equity awards vested during 2024.
6 Other benefits may include non-monetary benefits and any related FBT exempt and FBT payable benefits, excluding salary sacrificed benefits.
For Blair Vernon, the 2023 amount includes a one-off relocation allowance and the provision of taxation advice and services as part of his
relocation package in moving from New Zealand to Australia. The 2024 amount includes professional subscriptions, tax protection loan cost
incurred and tax advice.
7 For Blair Vernon, the 2023 amounts disclosed reflect remuneration paid in line with his KMP start date of 3 July 2023.
1.3
2024 remuneration outcomes continued
Remuneration report
44
2
Section
Remuneration strategy and framework
2.1
Our remuneration framework and mix
The following diagrams present the remuneration framework for 2024 applicable to AMP’s Executive Committee, including the
Executive KMP. It is supported by the remuneration governance, risk management and consequence management frameworks
and is subject to the discretion of the AMP Board. Variable remuneration and deferrals are used to emphasise reward, balancing
the retention and motivation of executives, whilst aligning to shareholder experience, long-term value creation and compliance
with regulatory frameworks. Deferring variable reward ensures executives are aligned to shareholders’ interests and remain
accountable (individually or collectively) over the long term, with the board having the ability to adjust past, present and future
remuneration downwards through clawback and malus when appropriate (refer to sections 4.2 and 4.3 for further information).
AMP’s remuneration framework 2024
Short Term Incentive
Opportunity
Performance and vesting periods
CEO & Executive KMP
YR1
YR2
YR3
YR4
YR5
YR6
Fixed Remuneration
Target: 100% of FR
Max: 200% of Target
(or 200% of FR) 1
STI Cash – 60%
STI deferral – 40%
Performance
Period
– 1 year
Restriction Period
Long Term Incentive
Opportunity
Performance and vesting periods
CEO
YR1
YR2
YR3
YR4
YR5
YR6
LTI – RTSR
Financial metric 35%
Up to 100% of FR
in performance
rights 2
Performance tests
LTI – EPS
Financial metric 35%
LTI – Reputation
Non‑financial 30%
Performance Period – 3 years
Restriction Period
Executive KMP
LTI – RTSR
Financial metric 35%
Up to 100% of FR
in performance
rights 1,2
Performance tests
LTI – EPS
Financial metric 35%
LTI – Reputation
Non‑financial 30%
Performance Period – 3 years
Restriction Period
1 The Chief Risk Officer’s (CRO) STI target is 70% of FR (maximum is 200% of target or 140% of FR) and LTI maximum opportunity is up to 70% of FR.
2 A maximum face value allocation approach was used to determine the number of performance rights granted under the LTI (refer to page 48).
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/2
1/2
1/2
1/2
1/2
1/2
45
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
Remuneration mix at maximum opportunity
The remuneration mix for the CEO and Executive Committee members (excluding the CRO) at maximum opportunity delivers
75% of total remuneration as variable reward and ‘at risk’ remuneration. The CRO’s remuneration mix is different to the
other Executive Committee members to ensure the independence of the role and mitigate against any conflicts of interest in
performing the risk control function across the organisation. Emphasis is placed on variable remuneration to ensure alignment
between pay, performance (including risk management) and the shareholder experience.
CEO and other Executive Committee members
Chief Risk Officer
Fixed Remuneration
25%
STI Cash
30%
STI Deferred Share Rights 20%
LTI Performance Rights
25%
Fixed Remuneration
32%
STI Cash
27%
STI Deferred Share Rights 18%
LTI Performance Rights
23%
2.2
Remuneration framework in detail
Fixed remuneration and contracts
Purpose
Fixed remuneration (FR) includes base salary and superannuation. FR is determined based on the size of the role, the
executive’s skill and experience and benchmarking (as described below) to ensure market competitive remuneration for
attracting and retaining talent.
Market positioning and remuneration benchmarking group
The Remuneration Committee (the Committee) uses market data as part of the annual remuneration review process.
Remuneration levels are benchmarked against a peer group that includes most companies from the ASX200 Financials (ex
A-REITS). The Committee makes periodic adjustments to the benchmarking peer group to ensure it reflects the appropriate
size, market capitalisation and other qualitative factors. In 2024, these adjustments excluded the big five banks, foreign
organisations listed on the ASX, and organisations that do not directly compete in the same industry/sector as AMP, such as
insurance companies. When setting remuneration levels, the Committee considers both internal and external relativities based
on AMP’s positioning within the benchmarking group.
Fixed remuneration increases
The board annually reviews fixed remuneration for the CEO and other Executive Committee members. There were no fixed
remuneration increases to Executive KMP in 2024. Increases to fixed remuneration in 2024 were made to other non-KMP
members of the Executive Committee, to reflect fixed remuneration levels of similar roles in peer organisations and changes
in scope of role. For 2025, there are no planned fixed remuneration increases for the CEO or Executive Committee members.
Contract terms
Contract terms
CEO
Executive KMP
Length of contract
Open-ended
Open-ended
Notice period
Six months by AMP or by Alexis George
Six months by AMP or the executive
Entitlements on termination
—
Accrued fixed pay, superannuation, and other statutory requirements.
—
Executives eligible for incentives may be awarded on a pro rata basis for the current period in the case of death,
disablement, redundancy, retirement or notice without cause, subject to the original performance periods and hurdle.
—
Unvested rights will lapse if an executive resigns or is summarily dismissed before the vesting date. Should an executive
cease employment for any other reason, any unvested rights will be retained and vest in the ordinary course, subject
to the original terms and performance conditions, if applicable.
—
Vested rights will be retained but are subject to clawback, for example, in the case of serious misconduct.
—
In the case of redundancy, the AMP Redundancy Policy in place at the time will apply. This is the same policy that
applies to all employees at AMP.
Restrictions on termination benefits
AMP will not make payments on termination that require shareholder approval or breach the Corporations Act.
Post-employment restraint
Six-month restraint on entering employment with a competitor and 12-month restraint on solicitation of AMP clients and employees.
2.1
Our remuneration framework and mix continued
Remuneration report
46
2024 Short-term incentive
Overview
STI is the variable remuneration at-risk component designed to motivate and reward for performance
during the year.
STI opportunity
Target STI opportunity is 100% of fixed remuneration (FR) for the CEO and Executive KMP; 70% of FR
for the Chief Risk Officer (CRO). Maximum STI opportunity is 200% of target.
Award
determination
STI opportunity
STI outcome
FR
$
x
Target STI
%
=
Target STI
$
x
STI pool
outcome →
Adjusted for
individual
performance
and behaviours
→
Risk
overview =
Individual
STI
outcome
STI outcomes are determined with reference to the holistic performance of AMP and the AMP
incentive pool, and Executive KMP individual performance and behaviours. The AMP incentive pool
is determined by the board based on:
—
A scorecard comprising financials, strategic, customer, reputation, and people priorities and
objectives that supports AMP’s risk management framework.
—
Other outcomes including shareholder value creation.
—
Behaviour in line with AMP’s purpose and values, conduct and risk appetite.
The board considers both the achievement of the risk metrics as well as a risk overview when
determining the incentive pool.
Individual
performance
For Executive KMP, the assessment of performance is based on AMP’s and their business unit
scorecards. This ensures an executive’s performance aligns to both company and their individual
business unit performance. Individual performance, conduct and demonstration of AMP’s values
are also considered when determining individual STI outcomes.
Delivery
60% of the STI is delivered as cash and 40% is deferred into equity.
Deferred STI is delivered as conditional share rights that represents the right to receive a fully‑paid
ordinary AMP share for nil consideration subject to continued employment at the time of vesting,
aligning executive reward directly to the shareholder experience.
Vesting period
Performance period
Restriction and vesting periods
YR1
YR2
YR3
YR4
YR5
Share rights
1/3
1/3
1/3
STI adjustment
principles
The board may, in its absolute discretion, adjust targets and/or outcomes upwards or downwards, to
ensure management is appropriately rewarded; for example, where an event occurs that means the
targets of the relevant scorecard objective are no longer appropriate. Situations where discretion to
adjust targets and/or outcomes can be applied include:
—
Factors not known or relevant at the beginning of the performance period which have a material
impact on performance, such as
•
Material changes to the strategic business plan.
•
Material regulatory or legislative change.
•
Material changes in external market or natural disasters.
•
Significant out of plan business development such as acquisitions and divestments.
—
Material risk or conduct events that have impacted on shareholder experience, the reputation
of the company or led to disciplinary action from our regulators (refer to section 4).
Where these events result in a materially different outcome to forecasts, adjustments should reflect the holistic
contribution of employees/Executive KMP and exclude significant costs or gains that were unforeseen, were
not in the ordinary course of business or were not the direct result of Executive KMP efforts.
Forfeiture (malus)
The board has the authority to adjust and lapse unvested equity (including downward adjustments to zero)
in various situations, such as protecting AMP’s financial soundness or responding to unexpected incidents
or consequences of prior actions. Incidents may include material risk management breaches, unexpected
financial losses, reputational damage, or regulatory non-compliance. Refer to section 4.3 for further
information on how the board considers adjusting remuneration for material risk and conduct events.
2.2
Remuneration framework in detail continued
47
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
2024 Long-term incentive
Overview
LTI awards granted during 2024 by the board in the form of performance rights will vest subject
to three metrics: Relative Total Shareholder Return (RTSR), Adjusted Earnings Per Share (EPS)
and Relative RepTrak Score (Reputation).
LTI opportunity
The total allocation value of LTI awards granted during 2024 to Executive KMP:
100% of FR for Executive KMP.
70% of FR for the Chief Risk Officer.
Maximum face value
allocation approach
Face value with the number of performance rights granted based on the volume weighted average
price (VWAP) of shares during the 10-trading day period up to 1 January 2024.
LTI opportunity
LTI grant
FR
$
x
LTI
%
=
LTI
$
÷
10‑day VWAP
(face value
allocation)
=
Number of
performance
rights granted
Performance and
vesting period
The performance of each metric is assessed over a three-year performance period from 1 January
2024 to 31 December 2026. If any of the performance rights vest, there is a further restriction period of
up to three years for the CEO and two years for other Executive KMP, subject to continued service (as
shown in the diagram below).
Performance period
Restriction and vesting periods
CEO
YR1
YR2
YR3
YR4
YR5
YR6
RTSR
Financial metric 35%
Performance tests
EPS
Financial metric 35%
Reputation
Non‑financial 30%
Executive KMP
RTSR
Financial metric 35%
Performance tests
EPS
Financial metric 35%
Reputation
Non‑financial 30%
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/3
1/2
1/2
1/2
1/2
1/2
1/2
2.2
Remuneration framework in detail continued
Remuneration report
48
2024 Long-term incentive
Performance
hurdles
RTSR – 35%
35% of the LTI award is
determined based on
AMP’s Compound Average
Growth Rate (CAGR) in
Total Shareholder Return
(TSR) relative to a peer
group of ASX 200 financial
companies excluding A-REITs
as at 1 January 2024. RTSR
performance is tested over
a three-year performance
period from 1 January 2024
through to 31 December 2026.
RTSR provides a robust measure
of AMP’s financial performance
and returns for shareholders in
comparison to other companies.
EPS – 35%
35% of the LTI award is
determined based on AMP’s
Compound Average Growth
Rate (CAGR) in AMP’s adjusted
EPS. Adjusted EPS is calculated
by dividing AMP’s underlying
net profit after tax for the
relevant reporting period
by the weighted average
number of ordinary shares
of AMP during the period. EPS
performance is tested over
a three-year performance
period from 1 January 2024
through to 31 December 2026.
EPS provides an appropriate
proxy for measuring intrinsic
long-term shareholder
value creation and
ensures management is
assessed on their direct
financial contribution.
Reputation – 30%
30% of the LTI award is
determined based on AMP’s
RepTrak score improvement
relative to a comparator
index as at 1 January 2024.
RepTrak score improvement
is tested over a three-year
performance period from
1 January 2024 through to
31 December 2026. As at 1
January 2024, the RepTrak
score for AMP was 58.8 and
is the starting point for testing
purposes.
Reputation is a measure of
AMP’s strategy to rebuild trust
with stakeholders and restore
the AMP brand.
Vesting Schedule
CAGR TSR
performance
– AMP TSR
ranking
Proportion
of RTSR
component
vesting
< 50th
percentile
0%
50th
percentile
50%
> 50th
percentile
and < 75th
percentile
Straight-line
vesting from
50% to 100%
(rounded to
the nearest
whole
percentile)
≥ 75th
percentile
100%
Vesting Schedule
CAGR EPS
performance
– AMP EPS
Proportion
of EPS
component
vesting
< 4% per
annum
0%
4%
50%
> 4% and < 8%
Straight-line
vesting from
50% to 100%
(rounded to
the nearest
whole
percentile)
≥ 8%
100%
The underlying net profit after
tax may be adjusted by the
board where appropriate,
to better reflect underlying
performance and remove
one‑off gains and losses.
Vesting Schedule
AMP RepTrak
Performance
Proportion of
Reputation
component
vesting
< 50th
percentile
0%
50th
percentile
50%
> 50th
percentile
and < 75th
percentile
Straight-line
vesting from
50% to 100%
(rounded to
the nearest
whole
percentile)
≥ 75th
percentile
100%
2.2
Remuneration framework in detail continued
49
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
2024 Long-term incentive
Peer/comparator
group
RTSR Peer Group
• AMP
• ANZ Group
• ASX
• AUB Group
• Bank of Queensland
• Bendigo & Adelaide
Bank
• Block, Inc.
• Challenger
• Commonwealth Bank
of Australia
• Credit Corp Group
• Helia Group
• HUB24
• Insignia Financial
• Insurance Australia
Group
• Macquarie Group
• Magellan Financial
Group
• Medibank Private
• National Australia
Bank
• Netwealth Group
• Nib holdings
• Perpetual
• Pinnacle Investment
Management Group
• QBE Insurance
Group
• Steadfast Group
• Suncorp Group
• Virgin Money UK
• Washington H Soul
Patterson and Co
• Westpac Banking
Corporation
RepTrak Comparator Group
• AGL Energy
• AMP
• ANZ
• Australian Taxation
Office
• BP Australasia
• Lendlease
Corporation
• Medibank Private
• NBN Co
• News Corp
• Optus
• Origin Energy
• Qantas Airways
• Reserve Bank
of Australia
• Rio Tinto
• Telstra Corporation
• Westpac Banking
Corporation
Vesting/forfeiture
conditions
If an executive is terminated for cause or gives notice of resignation to AMP before the vesting
date, all unvested rights (or restricted shares) will lapse or be forfeited, unless the board determines
otherwise. In all other cases, unless the board determines otherwise:
—
A pro rata portion of the executive’s performance rights (calculated based on the portion of the
performance period that has elapsed up until the date of termination) will remain on foot to be
tested in the ordinary course.
—
All restricted shares allocated to the executive on vesting of the performance rights will remain
on foot until the end of the relevant restriction period for each respective tranche.
Retesting
There is no retesting if the performance hurdle is not met.
Dividend
entitlements
No dividend is paid or payable on any unvested rights.
Clawback/malus
The board retains the discretion to adjust upwards or downwards the vesting outcome, including to
take into account any risk or conduct events that are not in line with the board’s expectations, and
lapse the unvested portion of any LTI award, including to zero in line with the remuneration adjustment
guidelines outlined in section 4.3.
2.2
Remuneration framework in detail continued
Remuneration report
50
2.3
Executive minimum shareholding requirements
The relevant amount of AMP equity required to be held by the Executive KMP under minimum shareholding policy and the time
to comply is as follows:
Category
Fixed Pay
Timeframe
Securities included to meet requirements
CEO
200%
Executive KMP are expected
to achieve the minimum
shareholding requirement
within a five-year period from
commencement in their role
AMP Limited shares: ordinary AMP Limited
shares registered in the Executive KMP’s name
or a related party
AMP share rights: granted to executives
through AMP’s employee share plans
Executive KMP
100%
Share rights allocated to Executive KMP are included to meet the minimum holding requirement only where future vesting is not
subject to any further performance condition (other than a continued service condition). AMP Limited shares and/or share rights
cannot be hedged. Executive KMP are not expected to purchase shares to meet the requirement. Rather, the expectation is that
Executive KMP do not sell any shares held (other than to cover arising tax liabilities) and that vested shares and share rights are
retained until the minimum requirement is reached.
51
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
3
Section
Performance and reward outcomes
3.1
Financial performance outcomes
The table below illustrates AMP’s performance over the past five years and remuneration outcomes.
2020
2021
2022
2023
2024
Financial results
Profit (loss) after tax attributable to shareholders ($m)
177
(252)
387
265
150
Net profit after tax (underlying) ($m) 1
233
280
184
205
236
Cost to income ratio (%) 1
76
67
72
67
64
Shareholder outcomes
Total dividends paid during the year (cents per share) 2
10
–
–
5
4
Share price at 31 December ($)
1.56
1.01
1.31
0.93
1.59
Remuneration outcomes
Relative TSR percentile 3
–
n/a
n/a
7th
76th
LTI performance test outcome (% of grant)
–
n/a
n/a
0%
100%
Average STI received by Executive KMP
(as % of target opportunity) 4
–
39
88
73.5
91.4
Average STI received by Executive KMP
(as % of maximum opportunity) 4
–
20
44
36.7
45.7
1
NPAT (underlying) represents shareholder attributable net profit or loss after tax after excluding non-recurring revenue and expenses. Note,
2023 and 2024 NPAT (underlying) and associated cost to income ratio have been restated to reflect the sale of Advice (now reported in
discontinued operations). Financial years 2020 – 2022 are as reported and have not been restated.
2 Refers to dividends paid during the year and not dividends declared. Refer to note 1.5 of the 2024 Financial Report for further information.
3 No LTI grants were tested during 2021 and 2022.
4 The average STI outcome relates to Executive KMP including the CEO. Refer to section 3.3 for further information of each Executive KMP's
2024 STI outcome.
Remuneration report
52
AMP and executive performance is assessed by reference to the scorecard. Each key result area has specific objectives,
metrics and targets that were set at the beginning of 2024. Achievements against these objectives were used by the board as
one of the key inputs in determining the STI incentive pool.
60% Financial
Profitability
Weighting:
30%
30%
Weighted outcome: 28.9%
Deliver sustainable
growth
NPAT
(underlying)
2023 Position:
$196m
2024 Target:
$240m
2024 Outcome:$236m
99%
End of 2023 position: $196m (as reported)
2024 Target: $240m
End of 2024 outcome: $236m (as reported)
AMP NPAT underlying delivered performance equivalent to approximately 98.7% of target or a weighted
outcome of 14.8%. This result reflects management’s focus on driving growth in the wealth businesses including
strong net cash flow momentum, disciplined cost management driving efficiencies across the organisation
whilst investing to grow and managing volume growth strategically in AMP Bank to protect margins.
Deliver profitable returns
NPAT (statutory)
2023 Position:
$265m
2024 Target:
$160m
2024 Outcome: $150m
94%
End of 2023 position: $265m (as reported)
2024 Target: $160m
End of 2024 outcome: $150m (as reported)
AMP NPAT statutory delivered performance equivalent to approximately 94.2% of target or a weighted
outcome of 14.1%, driven by managements focus on strategic priorities including disciplined cost
management. In addition to the underlying business performance NPAT (statutory) was impacted by
business simplification spend, litigation and remediation related costs, tax wash-ups and the sale of the
Advice business. AMP’s decision to sell the Advice business is aligned to the AMP strategy and has been
positively received by shareholders and the market. The transaction resulted in a net $36m accounting loss
on sale. Consequently, the statutory profit target for 2024 has been restated to $159.6m (from $195.6m) to
account for the transaction.
Strategy
Weighting:
30%
30%
Weighted outcome: 31.2%
Grow the Platforms
business
Platforms net
cashflow
2023 Position:
-$443m
2024 Target:
$500m
2024 Outcome: $471m
94%
End of 2023 position: -$443m (net outflow)
2024 Target: $500m (net inflow)
End of 2024 outcome: $471m (net inflow)
Platforms net cashflow delivered performance equivalent to 94.2% of target or a weighted outcome
of 9.4% with higher than expected pension payments impacting the outcome. Net cashflow materially
improved on prior year driven by higher inflows benefitting from continued growth in Managed Portfolios.
Improve Super &
Investments and
KiwiSaver cashflows
Net YoY
improvement
on Super &
Investments
and NZWM net
cashflows
2024 Target:
$4.6bn
2024 Outcome: $5.4bn
117%
2024 Target: $4.6bn
End of 2024 outcome: $5.4bn
AMP has delivered against key strategic commitments, including the combined year on year improvement of
Super & Investments and NZWM net cashflows equivalent to 116.7% of target or a weighted outcome of 11.7%.
3.2
2024 STI scorecard
53
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
60% Financial
Simplify the
business
Total
controllable
costs
2023 Position:
$744m
2024 Target:
$690m
2024 Outcome: $685m
101%
End of 2023 position: $744m
2024 Target: $690m
End of 2024 outcome: $685m
AMP has delivered a sustained cost base, absorbing inflation and addressing stranded costs, with total
controllable costs equivalent to 100.8% or a weighted outcome of 10.1%.
Further information on the Group Financial Performance can be found
in Business Review section of AMP’s 2024 Annual Report
40% Non-financial
Customer
Weighting:
10%
30%
Weighted outcome: 11.5%
Deliver to our
customers
Customer
satisfaction
score
2023 Position:
7.6
2024 Target:
7.6
2024 Outcome: 7.9
115%
End of 2023 position: 7.6 (out of 10)
2024 Target: 7.6 (out of 10)
End of 2024 outcome: 7.9 (out of 10)
AMP’s focus on great service, simpler processes, working with customers experiencing financial difficulty,
and investing in technology, has led to our customer satisfaction improving from 7.6 to 7.9. Customer
satisfaction presents an overall view of AMP customers, members & independent financial advisers
(IFAs) across Bank, AMP Super, Platforms and New Zealand Wealth Management (NZWM). The result is
equivalent to 115% of target or a weighted outcome of 11.5%.
People
Weighting:
10%
30%
Weighted outcome: 9.8%
Deliver an inclusive
high-performance
culture
Employee
Satisfaction
2023 Position:
73
2024 Target:
74
2024 Outcome: 74
100%
End of 2023 position: 73
2024 Target: 74
End of 2024 outcome: 74
Employee satisfaction has improved from 73 to 74 in line with 2024 plan, equivalent to a weighted outcome
of 5%. AMP remained focused on delivering an employee value proposition aligned to a simple and agile
company, focused on the customer.
Deliver an inclusive
high-performance
culture
Inclusion index
2023 Position:
74
2024 Target:
75
2024 Outcome: 74
95%
End of 2023 position: 74
2024 Target: 75
End of 2024 outcome: 74
The Inclusion Index has remained stable at 74, equivalent to a weighted outcome of 4.8%. In 2024, AMP
continue to prioritise an inclusive, high-performance culture, invested in leader capability and supported
our people through important company change.
Further information regarding diversity and inclusion can be found in AMP’s 2024 Sustainability Report
3.2
2024 STI scorecard continued
Remuneration report
54
40% Non-financial
Reputation
Weighting:
10%
30%
Weighted outcome: 11.4%
Deliver a positive
reputation
Absolute
RepTrak
2024 Target:
61
2024 Outcome: 64
114%
2024 Target: 61.0
End of 2024 outcome: 63.9
As a purpose led company AMP demonstrated ongoing commitment to building and maintaining a
positive reputation through delivering on our promises. We are pleased that our reputation has improved
to historic levels being above our 2024 target, resulting in an achievement of 114% or weighted outcome
of 11.4%. We remain committed to building and maintaining a positive reputation with all stakeholders.
Risk
Weighting:
10%
30%
Weighted outcome: 10.0%
Deliver effective
risk
management
Risk appetite
2023 Position:
1
2024 Target:
0–1
2024 Outcome: 1
100%
End of 2023 position: 1
2024 Target: 0–1 risks
End of 2024 outcome: 1
Effective management of risks was in line with the plan with 1 risk profile outside of AMP’s risk appetite
resulting in an achievement of 100% or a weighted outcome of 5%.
Deliver a culture that
respects risk
Risk culture
maturity
assessment
2023 Position:
Evolving
2024 Target:
Mature
2024 Outcome: Mature
100%
End of 2023 position: Evolving
2024 Target: Mature
End of 2024 outcome: Mature
Risk culture is about managing risks to protect our business and customers and taking appropriate
measures to grow. With everyone playing a role, in 2024 we took important steps to improve how we
track, report, prioritise and take action to improve risk culture. AMP achieved a Mature risk culture
assessment in line with plan, resulting in an achievement of 100% or weighted outcome of 5%.
2024 Performance Assessment – Total scorecard result
102.8%
3.2
2024 STI scorecard continued
55
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
How the incentive pool was determined
The board acknowledges the performance resulted in a scorecard outcome of
102.8% while also acknowledging a scorecard set annually in advance must make
assumptions about market conditions generally and across individual business units
specifically that rarely align with what happens.
Given the strong performance of equity markets, subdued growth in the bank and
overall remuneration outcomes, the board elected to exercise downward discretion in
terms of STI. This in no way reflects upon the performance of executive management
and employees, which has been excellent, but rather balances the remuneration
outcomes to reflect matters that are largely within management control.
Scorecard result
102.8%
Total incentive
pool
90%
3.3
Short-term Incentives Awarded in 2024
The following table shows the STI awarded to Executive KMP for the 2024 performance year. It differs from the statutory table
in section 6.1 which is prepared according to Australian Accounting Standards.
Target STI
opportunity 1
Total STI
outcome
awarded 2
60% to be paid
as cash 2
40% to be
delivered in
share rights 2
STI awarded
as % of
target STI
opportunity 3
STI awarded
as % of
max STI
opportunity 3
$'000
$'000
$'000
$'000
%
%
Executive KMP
Alexis George
1,715
1,580
948
632
92%
46%
Sean O'Malley
650
570
342
228
88%
44%
Nicola Rimmer-Hollyman
420
420
252
168
100%
50%
Blair Vernon
925
820
492
328
89%
44%
Total STI awarded
3,390
2,034
1,356
1
The STI outcome awarded is based on performance during 2024.
2 The total STI outcome awarded, of which 60% is paid in cash in April 2025, and 40% is granted in share rights in April 2025.
3 Represents the STI award as a percentage of the target and maximum STI opportunity (which is 200% of target). The average STI received by
Executive KMP was 91% of the target opportunity, or 46% of the maximum opportunity.
3.2
2024 STI scorecard continued
Remuneration report
56
3.4
2022 Long-term Incentive update
Performance rights awarded under the 2022 Long Term Incentive (LTI) plan and allocated in May 2022, were subject to an
RTSR performance condition measured over a three-year performance period from 1 January 2022 to 31 December 2024.
Performance rights that meet the performance condition are subject to a restriction period from 1 January 2025, vesting on
15 February 2026. The number of performance rights that vest under the award was determined by the board by reference
to a comparison of the compound annual growth rate (CAGR) in AMP’s total shareholder return (TSR) relative to the CAGR
in TSR to the peer group of S&P/ASX 100 financial companies excluding A-REITs as at 1 January 2022, in line with the vesting
schedule below.
Vesting Schedule
CAGR TSR performance
Proportion of LTI grant vesting
AMP’s TSR ranking below the 50th percentile of the peer group
0%
AMP’s TSR ranking at the 50th percentile of the peer group
50%
AMP’s TSR ranking between the 50th and 75th percentile of the peer group
50% plus 2% for each additional percentile
(rounded to nearest whole percentile)
AMP’s TSR ranking is at least the 75th percentile of the peer group
100%
ASX100 Financials (ex A-REITs) peer group as at 1 January 2022:
—
ANZ Group Holdings Limited
—
ASX Limited
—
Bank of Queensland Limited
—
Bendigo and Adelaide Bank Limited
—
Challenger Limited
—
Commonwealth Bank of Australia
—
Insurance Australia Group Limited
—
Macquarie Group Limited
—
Magellan Financial Group Limited
—
Medibank Private Limited
—
National Australia Bank Limited
—
QBE Insurance Group Limited
—
Suncorp Group Limited
—
Westpac Banking Corporation
Each performance right that vested following testing of the performance condition entitled executives to one AMP share. The RTSR
performance condition for the performance rights was tested following the conclusion of the performance period on 31 December
2024 and the results and vesting outcome are detailed below. The results were calculated by an external provider and approved by
the board after considering any risk and conduct issues in line with the remuneration adjustment guidelines in section 4.3.
Performance Period
Performance Condition
Percentile Rank
Performance achieved
1 January 2022 to 31 December
2024
AMP’s TSR ranking against
the S&P/ASX100 Financials
(ex A-REITS)
76th percentile
(81.03% growth)
100%
57
Overview
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Financial report
Additional information
AMP 2024 Annual report
3.5
CEO sign-on award outcome
As previously disclosed to the market in April 2021, Alexis George was provided a sign-on equity award as a part of her
appointment to the CEO role to compensate for remuneration foregone with her former employer. The equity awards granted
as part of that arrangement were structured as follows:
—
Four tranches of share rights subject to a continued service condition.
—
Three tranches of performance rights subject to an absolute Total Shareholder Return (ATSR) condition, which required a
compound annual growth in AMP’s TSR of 8.5% or greater for full vesting to occur. 50% of the award vests if AMP’s TSR is
positive with pro-rata straight line vesting between 50% and 100%.
—
Three tranches of performance rights subject to a relative TSR (RTSR) condition, with 100% vesting if AMP is in
the 75th percentile or higher of ASX100 Financials. 50% of the award vests if AMP is in the 50th percentile of the
ASX100 Financials (excluding A-REITs), consistent with the 2021 LTI peer group, with pro-rata straight line vesting
between 50% and 100%.
Further details of each tranche can be found in table 6.4.
Each of the performance metrics was subject to the following vesting schedules, respectively:
Absolute TSR
Relative TSR
CAGR ATSR performance
Proportion of LTI
grant vesting
CAGR TSR performance
Proportion of LTI
grant vesting
Nil or Negative TSR
0%
AMP’s TSR ranking below the 50th
percentile of the peer group
0%
Positive TSR
50%
AMP’s TSR ranking at the
50th percentile of the peer group
50%
Between positive TSR
and 8.5% CAGR
50% plus 2% for each
additional percentile
(rounded to nearest
whole percentile)
AMP’s TSR ranking between the 50th
and 75th percentile of the peer group
50% plus 2% for each
additional percentile
(rounded to nearest
whole percentile)
CAGR of 8.5% or above
100%
AMP’s TSR ranking is at least the
75th percentile of the peer group
100%
ASX100 Financials (ex A-REITs) peer group was defined as follows:
—
ANZ Group Holdings Limited
—
ASX Limited
—
Bank of Queensland Limited
—
Bendigo and Adelaide Bank Limited
—
Challenger Limited
—
Commonwealth Bank of Australia
—
Insurance Australia Group Limited
—
Macquarie Group Limited
—
Magellan Financial Group Limited
—
Medibank Private Limited
—
National Australia Bank Limited
—
QBE Insurance Group Limited
—
Suncorp Group Limited
—
Westpac Banking Corporation
In 2024, the third tranches of the ATSR and RTSR performance rights were tested following the conclusion of the performance
period on 22 November 2024. The results and vesting outcome are detailed below. The results were calculated by an external
provider and approved by the board after considering any risk and conduct issues in line with the remuneration adjustment
guidelines in section 4.3.
Component
Performance Period
Performance Condition
Result
% vested
% lapsed
ATSR – Tranche 3
22 November 2021
to 22 November 2024
Compound annual growth
in AMP’s TSR
14.1%
100%
0%
RTSR – Tranche 3
22 November 2021
to 22 November 2024
AMP’s TSR ranking against
the S&P/ ASX100 Financials
(ex A-REITS)
43rd percentile
0%
100%
Each performance right that vested following testing of the performance condition entitled the plan participants to one
AMP share.
Remuneration report
58
4
Section
Remuneration governance and risk management
4.1
AMP’s remuneration governance framework
There are a number of remuneration governance and oversight processes in place at AMP, primarily exercised through the
AMP Limited Board, subsidiary boards and the Remuneration Committee. The Remuneration Committee assists the various
boards to fulfil their remuneration obligations by developing, monitoring, and assessing remuneration strategy, policies and
practices across AMP. Members of the Remuneration Committee are independent non-executive directors. More information
on the role of the Remuneration Committee can be found in the corporate governance section of AMP’s website.
The board believes that to make prudent remuneration decisions, it needs both a robust framework and the ability to exercise
judgement. Therefore, the board has adopted a remuneration adjustment framework to guide the board in determining
appropriate remuneration outcomes. Refer to section 4.3 for further information on the remuneration adjustment guideline.
From time-to-time the Remuneration Committee may seek external guidance or benchmarking information from independent
remuneration advisers. Any advice provided by external advisers is used as a guide and is not a substitute for consideration
of all the issues by each non-executive director of the Remuneration Committee. The Remuneration Committee did not engage
any independent remuneration advisers to provide remuneration recommendations, as defined in the Corporations Act.
The following diagram outlines AMP’s remuneration governance framework.
Remuneration governance framework
AMP subsidiary Boards
AMP Limited Board
Remuneration Committee
Advises the AMP Board and the boards of
AMP subsidiaries in setting and overseeing
AMP’s remuneration policy and practices.
Key responsibilities include:
—
Reviewing AMP’s remuneration policy, including
effectiveness and compliance with regulatory
requirements.
—
Reviewing the remuneration arrangements,
performance objectives, measures and outcomes
for executives and senior management.
—
Reviewing the remuneration arrangements for
non‑executive directors.
—
Reviewing AMP’s remuneration disclosures.
—
Overseeing all incentive plans.
—
Reviewing and making recommendations in relation
to equity awards, including malus and clawback.
Risk and Compliance Committee
Assists the board with oversight of
the implementation and operation of
AMP’s risk management framework.
Makes recommendations to the Remuneration
Committee on:
—
Risk-related adjustments for remuneration
outcomes.
—
Risk-related adjustments for the incentive
pool.
—
Risk-related matters that may require the
application of malus or clawback or in-year
reduction to incentives.
Management
The CEO makes recommendations to the
Remuneration Committee on the performance
and remuneration outcomes for her direct reports.
Management advises the Remuneration Committee and
provides information on remuneration related matters.
Independent remuneration
advisers
The Remuneration Committee may
engage remuneration advisers
when it needs additional information
to assist the AMP Board in making
remuneration decisions.
59
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4.2
Risk management in remuneration
In addition to the robust risk features of the performance management framework, the board has a range of mechanisms
available to adjust remuneration and incentive outcomes to reflect behavioural, risk or compliance outcomes. The table below
summarises the range of mechanisms available and their intended operation.
Risk assessment
Risk and conduct outcomes
Malus and clawback
provisions
Board discretion
Enterprise and business unit levels
All employees
All variable remuneration plans
The Chief Risk Officer (CRO)
has a standing agenda item
and reports at each of the
Remuneration Committee
meetings, covering the overall
assessment of risk management
at the conclusion of the
performance year as an input
to the determination of the
incentive pool.
At the conclusion of each
performance year, the Chair
of the Risk and Compliance
Committee (who is also a
member of the Remuneration
Committee) provides an
overview of the key issues
considered by the Risk and
Compliance Committee
that are likely to be relevant
to the assessment of the
remuneration outcomes
for the CEO and Executive
Committee members by the
Remuneration Committee.
Employees’ risk
management
behaviour and
conduct is specifically
considered as part of
individual performance
assessments and in
the determination
of remuneration
outcomes.
The consequence
management framework
ensures that behaviour
which does not
meet expectations,
is actively and
consistently managed
throughout the year,
including adjustments
to past, present and
future remuneration
if appropriate.
Variable remuneration
(STI and LTI) plan
terms allow the board
to adjust and lapse
(malus) unvested
equity awards or
reclaim (clawback)
vested incentives in
certain circumstances.
All deferred incentives
are subject to
a conduct and risk
review before vesting.
This applies to current
and former employees.
The board may
apply its absolute
discretion to adjust
past, present and
future remuneration,
subject to the equity
incentive plan rules
governing the plan and
in compliance with the
relevant policies.
It does this in line with
the remuneration
adjustment framework
to provide greater
consistency in
remuneration
adjustments (refer
to section 4.3 below).
The board exercises discretion to apply both positive or negative remuneration consequences to executives with accountability
for matters arising in their business units, including those with adverse risk, customer and/or reputational impacts. There is a
standing agenda item at each Remuneration Committee for the CRO to present any risk related information the Committee
should consider when making remuneration decisions. This gives the Remuneration Committee an opportunity to make
enquiries and have unfettered access to risk and internal audit executives. The Remuneration Committee considers both the
achievement of the risk metrics as well as a risk overview when determining the incentive pool. Before every equity vesting
event, management provides a report to the Committee to highlight if there is any known reason, including risk considerations,
why the Committee should exercise its discretion to lapse the unvested equity award.
AMP has a Consequence Management Committee (CMC), which was established to ensure consistent management
of workplace conduct matters and application of AMP’s Consequence Management policy. The CMC comprises the Chief
Executive Officer, Chief People, Sustainability and Community Officer and Chief Risk Officer as standing members. Statistics
and insights on all conduct cases across AMP Limited are reported to the Risk and Compliance Committee on a biannual
basis, following review by the CMC. Matters are discussed at the Remuneration Committee that impact performance and
remuneration recommendations and outcomes. Under the consequence management framework, all substantiated cases of
misconduct require the application of a management and/or remuneration consequence. Where there is a recommendation
from People, Sustainability and Community (and as endorsed by the CMC) to apply malus or clawback to past remuneration as
a part of the recommended remuneration consequence, submissions are made to the Remuneration Committee to exercise its
discretion to lapse the unvested equity award.
During the year, there was no application of the Consequence Management policy in relation to 2024 remuneration outcomes
for any of AMP’s current executives.
Remuneration report
60
4.3
Guidelines for adjusting remuneration
The board has adopted a remuneration adjustment framework to provide guidance in exercising discretion related to past,
present and future remuneration and to provide greater consistency in the approach to remuneration adjustments. The
framework is considered at each remuneration decision point to identify whether there has been any material conduct or risk
events that have impacted on shareholder experience, the reputation of the company or led to disciplinary action from our
regulators. The framework also enables positive adjustment for performance outcomes above expectation.
The guidelines assist the AMP Board in making potential upward or downward adjustments to variable remuneration yet are
not intended to be used as a prescriptive or formulaic decision tree, as board judgement is applied according to the facts and
circumstances of a particular situation. Whilst the framework is designed to deal with material risk and conduct events, the
board can also exercise its judgement to apply positive adjustments where appropriate.
The following chart is an example of the types of qualitative and quantitative indicators the board may consider in exercising
discretion in relation to material conduct and risk events and applying adjustments to variable remuneration. Note that overall
organisational performance, managements performance, the shareholder experience, market factors, other inputs, and a risk
overlay are key to conducting holistic assessment.
Considerations for adjusting remuneration
Is the remuneration outcome on an individual or cohort basis in line with the actual values and original intent?
Qualitative indicators
Quantitative indicators
Considerations
Customer and people
Has there been a potential breakdown of trust with AMP’s employees,
customers, fund beneficiaries or members of the community or
operated in a way that is contrary to our stated values?
Customer Satisfaction and / or
Employee Satisfaction scores
Reputation
Has there been unexpected widespread media coverage about
AMP that has impacted the reputation or brand?
Reputation score (Reptrak),
shareholder experience
Risk
Has there been a material deterioration in the risk culture or profile
of the company?
Unacceptable level of risk
taken, risk culture survey, risk
events
Finance
Have we behaved in a way that was not fiscally responsible and
there was an impact on our prudential standing or reputation?
Capital adequacy,
credit rating, appropriate
market disclosure
Potential adjusting event identified
Enact
Decision making
Remuneration Committee
Board decision
Adjust remuneration upward or downward
Downward adjustment to be proportionate to the severity of the risk and conduct outcome
Reduction or
cancellation of
cash payments
Malus applied
to existing equity
awards on foot
Clawback of
already paid/
released equity
awards
Downward
adjustment
to in period
remuneration
Pre grant
adjustment to
quantum of
future LTI grant
61
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5
Section
Non-executive director fees and shareholding requirements
5.1
Non-executive director fees
The Remuneration Committee is responsible for reviewing Non-executive director (NED) fees for AMP Limited and its main
subsidiaries. In reviewing these fees, the Committee considers a range of factors including AMP’s operations and those of
its main subsidiaries, fees paid to board members of other Australian corporations of comparable size and complexity, and
the responsibilities and workload requirements of each board and committee. The Committee obtains market data and
recommends any proposed fee changes to the AMP Limited Board for approval.
A review of NED fees for the AMP Limited Board (which also included fees for all AMP Bank Board duties and obligations) was
conducted in 2024. This included reference to a remuneration benchmark group of companies comparable to AMP and excluding
the big four banks, foreign organisations listed on the ASX and organisations that do not directly compete in the same industry/
sector as AMP (e.g., insurance companies). Following a thorough market data analysis, the board concluded that the current
fees are competitive with those of companies of equivalent size, complexity, and regulatory oversight. Given that total NED fees
paid have reduced by more than 43% since 2019, it was deemed appropriate to maintain fees at slightly above the median of
the financial services sector (excluding ANZ, CBA, Macquarie, NAB, Westpac and others), due to ongoing time demands on the
boards of AMP Limited and AMP Bank Limited.
During 2024, the board met 16 times, and committees met an additional total of 21 times. The total remuneration earned by AMP
Limited NEDs during 2024 (including all AMP Bank duties and obligations) was $2.145m, which represents 46.4% of the 2024 annual
fee pool. The current members and role of each standing committee as at the date of this statement are set out in the corporate
governance statement. The following table shows the annual NED fees for the board and permanent committees of AMP Limited
and AMP Bank Limited for 2024.
Chair base fee
Member base fee
2024
2024
$
$
AMP Limited
Board
561,000 1
204,000
Audit Committee
46,750
21,590
Risk and Compliance Committee
46,750
21,590
Remuneration Committee
46,750
21,590
Nomination Committee
nil
nil
AMP Bank 2
Board
nil
nil
Audit Committee
nil
nil
Risk and Compliance Committee
nil
nil
1
The Chair of AMP Limited Board does not receive separate committee fees. Since being appointed as Chair, Mike Hirst is also Chair of the
Nomination Committee and remains a member of the Board Remuneration and Risk and Compliance Committees.
2 No additional fees are paid to NEDs for their membership or for chairing the AMP Bank Limited Board.
5.2
Non-executive director minimum shareholding
The minimum shareholding requirement (MSR) for NEDs is set out in AMP’s minimum shareholding policy. Under this policy,
NEDs are expected to accumulate and hold a minimum value of AMP shares to ensure their interests are aligned with the
long-term interests of AMP shareholders. As at the date of this report, these minimum values are 100% of the AMP Limited
base Chair fee for the Chair and 100% of the AMP Limited base NED fee for all other NEDs. NEDs are expected to achieve
these levels within four years of their appointment. The policy expects NEDs to apply at least 25% of their base fee each
year to acquire AMP shares until the MSR has been met. NEDs are also encouraged to increase their ownership over their
tenure. Any such acquisition of AMP shares may only occur when permitted to do so in accordance with AMP’s trading policy.
Opportunities for NEDs to acquire shares in accordance with AMP’s Trading Policy were limited between 2019 and 2022 due to
ongoing transactions. As at the date of this report, all NEDs have either met their MSR or are on target to do so. See section 6.6
for details of securities held by NEDs as at 31 December 2024.
Remuneration report
62
6
Section
Statutory tables
The following tables provide additional information and/or are required under the Corporations Act. This includes the 2024
remuneration for Executive KMP and NEDs that has been prepared in accordance with the Australian Accounting Standards.
6.1
Statutory remuneration – Executive KMP
Statutory remuneration represents the accounting expense of remuneration in the financial year. It includes fixed remuneration,
cash STI, the fair value amortisation expense of equity awards granted, long service leave entitlements and insurance, reflective of
the relevant KMP period.
Short-term employee benefits
Post-
employment
benefits
Share-
based
payments 4
Long-term
benefits
Executive KMP
Year
Cash
salary 1
$'000
Cash
STI 2
$'000
Other
short-term
benefits 3
$'000
Super-
annuation
benefits
$'000
Rights
and
options
$'000
Other 5
$'000
Termination
benefits
$'000
Total 6
$'000
Alexis George
2024
1,671
948
18
28
1,345
10
–
4,020
2023
1,670
772
18
29
1,514
7
–
4,010
Sean O'Malley
2024
614
342
25
29
481
30
–
1,521
2023
600
272
(10)
29
414
22
–
1,327
Nicola Rimmer-
Hollyman
2024
548
252
(16)
52
351
16
–
1,203
2023
539
192
(2)
57
236
10
–
1,032
Blair Vernon 7
2024
897
492
1
28
684
25
–
2,127
2023
448
218
70
15
307
15
–
1,073
Total
2024
3,730
2,034
28
137
2,861
81
–
8,871
2023
3,257
1,454
76
130
2,471
54
–
7,442
1
Cash salary is inclusive of base salary and short-term compensated absences, less superannuation deductions.
2 Cash STI reflects 60% of the STI award outcome for the 2024 performance year for Executive KMP.
3 Other short-term benefits include non-monetary benefits and any related FBT exempt benefits and FBT payable benefits, for example car
parking, car leasing arrangements, taxation advice, professional memberships and subscriptions and the net change in annual leave accrued.
For Blair Vernon, the 2023 amount includes a one-off relocation allowance and the cost of tax advice associated with his relocation from New
Zealand to Australia.
4 The values in the table reflect the current year accounting expense for all share rights and performance rights outstanding at any point during
the year, as required under the Australian Accounting Standards. The cost of the award is amortised at the fair value over the vesting period and
updated at each reporting period for changes in the number of instruments expected to vest.
5 Other long-term benefits represent the net change in long service leave accrued.
6 The total in this table for 2023 of $7.442 million is different to the total for 2023 in the 2023 Remuneration Report as it does not include $367
thousand for Peter Fredricson, $270 thousand for James Georgeson and $1.367 million for Scott Hartley as reported in the 2023 Remuneration
Report.
7 Blair Vernon was appointed to the CFO role on 3 July 2023 and the amounts disclosed for 2023 reflect the period as KMP. The 2023 fixed
remuneration package reflects non-monetary benefits he forfeited upon relocating from New Zealand to Australia and compensates for the
different taxation rates between the two tax jurisdictions.
63
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6.2
Loans and other transactions
All loans provided by AMP to KMP and their related parties are in the ordinary course of business and on equivalent terms
to those offered to other employees and shareholders. These loans include other borrowing facilities offered to employees
from time-to-time as part of our global mobility arrangements. The following table shows loan balances that exceed $100,000
held by KMP (including their related parties) during the reporting year. One Executive KMP holds a loan balance of less than
$100,000. No loans were written down during the reporting year.
KMP
Balance on
1 Jan 2024
Write downs
Net advances
(repayments)
Balance on
31 Dec 2024
Interest
Highest
balance
during the
year
charged
not charged
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Non-executive director
Mike Hirst
–
–
1,600
1,600
53
–
1,600
Anna Leibel
–
–
2,147
2,147
121
–
2,695
Executive KMP
Alexis George
667
–
(14)
653
40
–
667
Sean O’Malley
1,424
–
1,162
2,586
135
–
2,620
Aggregate of KMP and
related party loans 1
2,117
–
4,894
7,011
349
2
7,608
1
The aggregate of KMP and related party loans includes all loans to KMP including related parties. The table details KMP and related parties
with loans above $100,000 during the reporting period.
Other transactions
Executive KMP and their related parties may have access to AMP products and these products are provided to executives
within normal employee terms and conditions. The products may include personal banking with AMP bank and/or financial
investment services.
Remuneration report
64
6.3
Executive shares and share rights holding
The following table shows the number of shares and share rights held by Executive KMP and/or their related parties during 2024.
A related party is typically a family member of the executive and/or is an entity in which the executive has direct or indirect
control. The definition of units includes AMP Limited shares and share rights which are not subject to performance conditions.
Shares and Share Right Holdings
MSR Progress 6
Name
Type
Balance on
1 Jan 2024
Granted 1
Exercised/
released 2
Forfeited/
lapsed
Other
transactions
Balance
on 31 Dec
2024 4
Total Value
on 31 Dec
2024 per
the MSR 5
Requirement
per the MSR 5
Executive KMP
Alexis
George
Shares
1,705,467
–
503,546
–
–
2,209,013
$4,989,789
$3,430,000
Share rights
664,891
553,226
(278,998)
–
–
939,119
by
Total
2,370,358
553,226
224,548
–
–
3,148,132
1 August
2026
Sean
O'Malley
Shares
215,206
–
(134,454)
–
80,752
$839,296
$650,000
Share rights
388,823
194,839
(134,890)
–
–
448,772
by
Total
604,029
194,839
(269,344) 3
–
–
529,524
14 November
2026
Nicola
Rimmer-
Hollyman
Shares
11,250
–
36,994
–
48,244
$844,648
$600,000
Share rights
384,017
137,634
(36,994)
–
–
484,657
by
Total
395,267
137,634
–
–
–
532,901
12 February
2027
Blair
Vernon 6
Shares
254,533
–
310,676
–
565,209
$1,896,676
$925,000
Share rights
628,129
313,979
(310,676)
–
–
631,432
by
Total
882,662
313,979
–
–
–
1,196,641
2 July 2028
1
Relates to share rights awarded as part of the 2023 STI deferral on 1 April 2024, with fair values of $1.13 for Tranche 1, $1.08 for Tranche 2 and
$1.04 for Tranche 3.
2 A portion of share rights and performance rights granted to Alexis George as part of her sign-on award on 2 August 2021 vested and were
exercised to AMP Limited shares on 22 November 2024 at a market price of $1.60 per share. For all executive KMP, Share Rights exercised
included tranche 1 of the 2022 STI deferral that vested on 31 January 2024 at a market price of $0.94 per share. Additionally, for Alexis
George, Blair Vernon and Sean O'Malley, Share Rights exercised included tranche 2 of the 2021 STI deferral that vested on 15 February 2024
at a market price of $1.06 per share. Lastly, for Blair Vernon, Shares Rights exercised also included the 2019 STI deferral that vested on 15
February 2024 at a market price of $1.06 per share.
3 For Sean O'Malley, Shares exercised / released relates to 269,344 shares sold on market during 2024.
4 There are no share rights held by any KMP’s related parties and no share rights held indirectly or beneficially by our KMP. As at 31 December
2024, there were no share rights vested, or vested and exercisable or vested and unexercisable. No amount is payable by the Executive KMP on
grant, vesting or exercise of their share rights. Any share rights that vest following the end of the vesting period will be automatically exercised.
5 We assess compliance with our minimum shareholding requirement (MSR) each year. The table above summarises the position of each Executive
KMP as at 31 December 2024 against the requirement at the reporting date. The total value of each holding was calculated on 31 December
2024 using a closing price of $1.585.
6 The opening balance for Blair Vernon's shareholding is 85,149 less than the closing balance reported in the 2023 Remuneration Report. This
discrepancy is due to the incorrect attribution of 85,149 ordinary shares to Blair Vernon's holdings in 2023.
65
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6.4
Executive performance rights holdings
The following table shows the performance rights which were granted, exercised or lapsed during 2024.
Grant date
Performance
measure
Fair
value
per
right
Holding on
1 Jan 2024
Granted 1
Vested 2
Lapsed/
cancelled 3
Held on
31 Dec 2024 4
Rights
exercised
to AMP
Limited
shares
Executive KMP
Alexis
George
9-Aug-21
Absolute TSR
0.62
224,548
–
(224,548)
–
–
224,548
9-Aug-21
Relative TSR
0.61
673,668
–
–
(673,668)
–
–
30-May-22
Relative TSR
0.59
1,818,278
–
–
–
1,818,278
–
1-Apr-23
Relative TSR
0.44
438,715
–
–
–
438,715
–
1-Apr-23
Adjusted EPS
0.92
438,715
–
–
–
438,715
–
1-Apr-23
Reputation
0.92
376,042
–
–
–
376,042
–
1-Apr-24
Relative TSR
0.72
–
645,430
–
–
645,430
–
1-Apr-24
Adjusted EPS
1.04
–
645,430
–
–
645,430
–
1-Apr-24
Reputation
1.04
–
553,227
–
–
553,227
–
Total
3,969,966
1,844,087
(224,548)
(673,668)
4,915,837
224,548
Sean
O'Malley
30-May-22
Relative TSR
0.59
636,132
–
–
–
636,132
–
1-Apr-23
Relative TSR
0.44
166,277
–
–
–
166,277
–
1-Apr-23
Adjusted EPS
0.92
166,277
–
–
–
166,277
–
1-Apr-23
Reputation
0.92
142,523
–
–
–
142,523
–
1-Apr-24
Relative TSR
0.72
–
244,624
–
–
244,624
–
1-Apr-24
Adjusted EPS
1.04
–
244,624
–
–
244,624
–
1-Apr-24
Reputation
1.04
–
209,677
–
–
209,677
–
Total
1,111,209
698,925
–
–
1,810,134
–
Nicola
Rimmer-
Hollyman
30-May-22
Relative TSR
0.59
318,066
–
–
–
318,066
–
1-Apr-23
Relative TSR
0.44
107,440
–
–
–
107,440
–
1-Apr-23
Adjusted EPS
0.92
107,441
–
–
–
107,441
–
1-Apr-23
Reputation
0.92
92,092
–
–
–
92,092
–
1-Apr-24
Relative TSR
0.72
–
158,065
–
–
158,065
–
1-Apr-24
Adjusted EPS
1.04
–
158,064
–
–
158,064
–
1-Apr-24
Reputation
1.04
–
135,484
–
–
135,484
–
Total
625,039
451,613
–
–
1,076,652
–
Blair Vernon
30-May-22
Relative TSR
0.59
791,631
–
–
–
791,631
–
1-Apr-23
Relative TSR
0.44
186,517
–
–
–
186,517
–
1-Apr-23
Adjusted EPS
0.92
186,517
–
–
–
186,517
–
1-Apr-23
Reputation
0.92
159,871
–
–
–
159,871
–
1-Apr-24
Relative TSR
0.72
–
348,118
–
–
348,118
–
1-Apr-24
Adjusted EPS
1.04
–
348,118
–
–
348,118
–
1-Apr-24
Reputation
1.04
–
298,388
–
–
298,388
–
Total
1,324,536
994,624
–
–
2,319,160
–
1
Relates to the 2024 LTI plan. Refer to section 2.2 for further information.
2 During the 2024 financial year, 224,548 long term incentive performance rights vested.
3 For Alexis George (CEO), Performance Rights with a grant date of 9 August 2021 were performance tested on 22 November 2024, with 100%
of performance rights vesting for ATSR, and 100% of performance rights lapsing for RTSR as the minimum threshold for any vesting was not
satisfied. Refer to section 3 for further information.
4 There are no options or performance rights held by any KMP’s related parties and no options or performance rights held indirectly or beneficially by our
KMP. As at 31 December 2024, there were no performance rights vested, or vested and exercisable or vested and unexercisable. No amount is payable
by the Executive KMP on grant, vesting or exercise of their performance rights. Any performance rights that vest following the testing of the performance
condition will be automatically exercised and any performance rights that do not vest following the performance testing will lapse (and expire) at that time.
Remuneration report
66
6.5
2024 statutory remuneration – Non-executive director
Short-term benefits
Post-employment
benefits
NED
Year
Board and
committee fees
Additional board
duties
Non-monetary
benefits 1
Superannuation 2
Total
$’000
$’000
$’000
$’000
$’000
Mike Hirst
2024
467
–
–
12
479
2023
267
11
–
5
283
Kathleen Bailey-Lord
2024
206
–
–
23
229
2023
–
–
–
–
–
Andrew Best
2024
237
–
–
27
264
2023
207
13
–
24
244
Rahoul Chowdry
2024
245
–
–
28
273
2023
246
–
–
26
272
Anna Leibel
2024
203
–
–
23
226
2023
–
–
–
–
–
Michael Sammells
2024
241
–
–
27
268
2023
246
14
–
26
286
Andrea Slattery
2024
220
–
–
27
247
2023
220
31
2
27
280
Former non-executive director
Debra Hazelton
2024
150
–
2
9
161
2023
539
–
–
22
561
Total 3
2024
1,969
–
2
176
2,147
2023
1,725
69
2
130
1,926
1
Non-monetary benefits consist of farewell gifts and any associated fringe benefits tax.
2 Superannuation contributions are disclosed separately in this table however are included in the base NED fees disclosed elsewhere in this report.
3 The total in this table for 2023 of $1.926 million is different to the total for 2023 in the 2023 Remuneration Report as it does not include $230
thousand for former non-executive director Kathryn McKenzie.
67
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
6.6
Non-executive director shareholding
The following table details the shareholdings and movements in those shareholdings in AMP Limited held directly, indirectly or
beneficially by NEDs or their related parties during the year and as at 31 December 2024.
NED
Balance on
1 Jan 2024
Shares acquired
during the year
Shares disposed
during the year
Balance on
31 Dec 2024 1
#
#
#
#
Current non-executive directors
Mike Hirst
200,000
–
–
200,000
Kathleen Bailey-Lord
–
46,740
–
46,740
Andrew Best
153,712
44,000
–
197,712
Rahoul Chowdry
100,000
–
–
100,000
Anna Leibel
–
33,974
–
33,974
Michael Sammells
170,000
–
–
170,000
Andrea Slattery
203,975
–
–
203,975
Former non-executive director
Debra Hazelton 2
400,285
–
–
n/a
1
As at 31 December 2024 and the date of this report, each of the current NEDs held a ‘relevant interest’ (as defined in the Corporations Act
2001) in the number of AMP shares disclosed above for that NED.
2 Debra Hazelton retired as Non-executive director on 12 April 2024.
Remuneration report
68
7
Section
Looking forward to 2025
7.1
Changes to executive remuneration
As we change the shape of the business through simplification and strategic growth initiatives, we aim to ensure our
remuneration framework remains appropriate. In 2024 we conducted an external market review to support the board, including
a review of the sentiment expressed by investors through the 2024 AGM season. Based on this review, we concluded that
the individual STI opportunity levels and the maximum quantum of variable remuneration may no longer align with AMP’s
new operating scale and size. Consequently, the board decided to adjust AMP’s Executive remuneration framework in line
with the market review, reducing the maximum STI opportunity for the CEO and Group Executives from 200% to 150% of
fixed remuneration, effective 1 January 2025. For the Chief Risk Officer, the maximum opportunity reduces from 140% of
fixed remuneration to 105%.
Key changes at a glance
What
Reduced maximum STI opportunity from 200% to 150% of fixed remuneration (FR) for the CEO and
Executive KMP (105% of FR for the CRO).
Why
To align with changes to AMP’s operating scale, investor expectations, and market developments.
Reduction in remuneration opportunity
Data presented in thousands ($000) and assumes no increases to fixed remuneration in 2025.
Alexis George
2025 Maximum
6,003
1,715
2,573
1,715
Chief Executive Officer
2024 Maximum
6,860
1,715
3,430
1,715
Blair Vernon
2025 Maximum
3,238
925
1,388
925
Chief Financial Officer
2024 Maximum
3,700
925
1,850
925
Sean O’Malley
2025 Maximum
2,275
650
975
650
Group Executive, AMP Bank
2024 Maximum
2,600
650
1,300
650
Nicola Rimmer-Hollyman
2025 Maximum
1,650
600 630 420
Chief Risk Officer
2024 Maximum
1,860
600
840
420
Fixed remuneration
Maximum STI opportunity
Maximum LTI opportunity
69
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Financial report
Additional information
AMP 2024 Annual report
7.2
2025 scorecard
The 2025 scorecard is consistent with 2024, and seeks to continue to strike the right balance of financial and non-financial
metrics. This approach ensures management’s interests are aligned with shareholders’ interests, while maintaining a material
weighting to non-financial metrics, consistent with the requirements of APRA’s prudential standard CPS 511.
2025 SCORECARD
Key result areas
Objectives
Metric
Financially aligned (60%)
Profitability
WEIGHTING
30%
Deliver profitable returns
Cost to income
Net profit after tax 1
Strategy
WEIGHTING
30%
Grow our businesses
Deliver the new cost base
Platforms net cashflows 2
Super & Investments net cashflows 2
NZWM net cashflows 2
Small Business & Personal Banking
account balances
AMP Controllable costs
Non-financial (40%)
Customer
WEIGHTING
10%
Deliver to our customers
AMP Customer satisfaction
People
WEIGHTING
10%
Deliver an inclusive high-performance
culture
AMP Inclusion index
Reputation
WEIGHTING
10%
Deliver a positive reputation
AMP RepTrak score
Risk
WEIGHTING
10%
Deliver a culture that respects risk
AMP Risk appetite
AMP Risk culture
100%
The overall AMP performance scorecard outcome is subject to board discretion and a risk
overview, and is one aspect the board considers in assessing overall performance and
determining the incentive pool for STI outcomes
1 Underlying
2 Net cashflow figures exclude pension payments.
Remuneration report
70
Rounding
In accordance with the Australian Securities and Investments Commission Corporations Instrument 2016/191, amounts in this
directors’ report and the accompanying financial report have been rounded off to the nearest million Australian dollars,
unless stated otherwise.
Non-audit services
The Audit Committee has reviewed details of the amounts paid or payable to the auditor for non-audit services provided
to the AMP group during the year ended 31 December 2024, by the company’s auditor, EY.
The directors are satisfied that the provision of those non-audit services by the auditor is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001 and did not compromise the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
—
all non-audit assignments were approved by the Chief Financial Officer (CFO), or his nominated delegate, or the Chair
of the Audit Committee;
—
no non-audit assignments were carried out which were specifically excluded by the AMP Charter of Audit Independence;
and
—
the proportion of non-audit fees to audit fees paid to EY, as disclosed in note 6.5 to the financial report is not considered
significant enough to compromise EY’s independence or cause a perception of compromise.
Signed in accordance with a resolution of the directors.
Mike Hirst
Chair
Alexis George
Chief Executive Officer and Managing Director
Sydney, 14 February 2025
Directors’ report
for the year ended 31 December 2024
71
Overview
Directors’ report
Business review
Financial report
Additional information
AMP 2024 Annual report
As lead auditor for the audit of the financial report of AMP Limited for the financial year ended 31 December 2024,
I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit.
This declaration is in respect of AMP Limited and the entities it controlled during the financial year.
Ernst & Young
Sarah Lowe
Partner
14 February 2025
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Auditor’s independence declaration
to the directors of AMP Limited
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
72
TABLE OF CONTENTS
Main statements
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
74
75
76
77
79
About this report
Understanding the AMP financial report
Basis of consolidation
Material accounting policies
Critical judgements and estimates
80
80
81
81
Section 1:
Results for the year
1.1 Segment performance
1.2 Other operating expenses
1.3 Earnings per share
1.4 Taxes
1.5 Dividends
82
86
87
88
90
Section 2:
Loans and advances,
investments, intangibles and
working capital
2.1 Loans and advances
2.2 Investments in other financial assets and liabilities
2.3 Intangibles
2.4 Other assets
2.5 Receivables
2.6 Payables
2.7 Fair value information
91
94
96
97
98
98
99
Section 3:
Capital structure and
financial risk management
3.1 Contributed equity
3.2 Interest-bearing liabilities
3.3 Financial risk management
3.4 Derivatives and hedge accounting
3.5 Capital management
104
105
106
113
116
Section 4:
Employee disclosures
4.1 Defined benefit plans
4.2 Share-based payments
117
121
Section 5:
Group entities
5.1 Controlled entities
5.2 Discontinued operations
5.3 Investments in associates
5.4 Parent entity information
5.5 Related party disclosures
126
127
128
129
131
Section 6:
Other disclosures
6.1 Notes to the Consolidated statement of cash flows
6.2 Commitments
6.3 Right of use assets and lease liabilities
6.4 Provisions and contingent liabilities
6.5 Auditor’s remuneration
6.6 New accounting standards and other developments
6.7 Events occurring after reporting date
133
134
134
136
138
138
139
Consolidated entity disclosure statement
140
Directors’ declaration
142
Independent Auditor’s Report
143
Financial report
for the year ended 31 December 2024
73
AMP 2024 Annual report
Overview
Directors’ report
Business review
Financial report
Additional information
2024
2023 1
Note
$m
$m
Fee revenue
1.1(c)
856
814
Interest income using the effective interest method
1,660
1,399
Other interest income 2
185
333
Other investment gains
–
31
Share of profit from associates
84
72
Movement in guarantee liabilities
7
32
Other income
77
49
Total revenue
2,869
2,730
Fee related expenses
(148)
(169)
Staff and related expenses
(467)
(541)
Finance costs 2
(1,608)
(1,519)
Other operating expenses
1.2
(382)
(422)
Other investment losses
(22)
–
Total expenses
(2,627)
(2,651)
Profit before tax
242
79
Income tax (expense)/benefit
1.4(a)
(62)
46
Profit after tax from continuing operations
180
125
(Loss)/profit after tax from discontinued operations
5.2
(30)
140
Profit for the year
150
265
Earnings per share
cents
cents
Basic
1.3
5.7
9.3
Diluted
1.3
5.6
9.1
Profit per share from continuing operations
Basic
1.3
6.9
4.4
Diluted
1.3
6.8
4.3
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
2 Interest income and interest expense relating to derivative financial instruments were previously presented net within finance costs. For the
year ended 31 December 2024, the interest income relating to derivative financial instruments has been presented within total revenue, and
the interest expense relating to derivative financial instruments has continued to be presented as finance costs. The comparative figures for
the year ended 31 December 2023 have been re-presented for consistency.
Consolidated income statement
for the year ended 31 December 2024
74
2024
2023 1
Note
$m
$m
Profit for the year after tax from continuing operations
180
125
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Fair value reserve
— net (loss)/gain on fair value asset reserve
(29)
81
— tax effect on fair value reserve loss/(gain)
9
(24)
— net amount transferred to profit or loss for the year
17
(1)
— tax effect on amount transferred to profit or loss for the year
(5)
–
Total fair value reserve
(8)
56
Cash flow hedges
— net loss on cash flow hedges
(27)
(69)
— tax effect on cash flow hedge
(3)
21
— net amount transferred to profit or loss for the year
(72)
(124)
— tax effect on amount transferred to profit or loss for the year
21
37
Total cash flow hedges
(81)
(135)
Translation of foreign operations and revaluation of hedge of net investments
22
4
Total translation of foreign operations and revaluation of hedge of
net investments
22
4
Defined benefit plans
— actuarial gains/(losses)
4.1(a)
61
(12)
— tax effect on actuarial (gains)/losses
(15)
4
Total defined benefit plans
46
(8)
Total other comprehensive loss for the year from continuing operations
(21)
(83)
Total comprehensive income for the year from continuing operations
159
42
(Loss)/profit for the year from discontinued operations
5.2(b)
(30)
140
Other comprehensive loss for the year from discontinued operations
5.2(b)
–
(7)
Total comprehensive (loss)/income for the year from discontinued operations
5.2(b)
(30)
133
Total comprehensive income for the year
129
175
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
Consolidated statement of comprehensive income
for the year ended 31 December 2024
75
AMP 2024 Annual report
Overview
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Financial report
Additional information
2024
2023
Note
$m
$m
Assets
Cash and cash equivalents
1,379
1,440
Receivables
2.5
447
426
Other financial assets
2.2
5,897
5,368
Current tax assets
4
83
Loans and advances
2.1(a)
23,423
24,530
Investments in associates
5.3
839
803
Right of use assets
6.3(a)
239
329
Deferred tax assets
1.4(b)
602
640
Intangibles
2.3
219
209
Other assets
2.4
53
48
Defined benefit plan asset
4.1(a)
59
–
Total assets
33,161
33,876
Liabilities
Payables
2.6
243
185
Current tax liabilities
5
23
Employee benefits
108
140
Other financial liabilities
2.2
165
179
Provisions
6.4
233
508
Interest-bearing liabilities
3.2
28,216
28,382
Lease liabilities
6.3(b)
498
536
Deferred tax liabilities
1.4(b)
16
16
Guarantee liabilities
25
32
Defined benefit plan liability
4.1(a)
–
1
Total liabilities
29,509
30,002
Net assets
3,652
3,874
Equity
Contributed equity
3.1
4,420
4,664
Reserves
763
239
Accumulated losses
(1,531)
(1,029)
Total equity
3,652
3,874
Consolidated statement of financial position
as at 31 December 2024
76
Equity attributable to shareholders of AMP Limited
Contributed
equity
Share-
based
payment
reserve
Capital
profits
reserve 1
Profits
reserve 2
Fair
value
reserve
Cash flow
hedge
reserve
Foreign
currency
translation
and hedge
of net
investments
reserves
Total
reserves
Accumulated
losses
Total
equity
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
2024
Balance at the beginning of the year
4,664
120
(34)
22
(71)
130
72
239
(1,029)
3,874
Adjustments 3
–
–
–
–
–
9
(5)
4
8
12
Adjusted balance at the beginning of the year
4,664
120
(34)
22
(71)
139
67
243
(1,021)
3,886
Profit from continuing operations
–
–
–
–
–
–
–
–
180
180
Loss from discontinued operations
–
–
–
–
–
–
–
–
(30)
(30)
Other comprehensive (loss)/income from
continuing operations
–
–
–
–
(8)
(81)
22
(67)
46
(21)
Total comprehensive (loss)/income
–
–
–
–
(8)
(81)
22
(67)
196
129
Share-based payment expense
–
7
–
–
–
–
–
7
–
7
Share purchases
(244)
(5)
–
–
–
–
–
(5)
–
(249)
Dividends paid
–
–
–
–
–
–
–
–
(106)
(106)
Transfers to profits reserve
–
–
–
577
–
–
–
577
(577)
–
Transfers to accumulated losses
–
–
8
–
–
–
–
8
(8)
–
AMP Foundation charitable distribution
–
–
–
–
–
–
–
–
(15)
(15)
Balance at the end of the year
4,420
122
(26)
599
(79)
58
89
763
(1,531)
3,652
1
The capital profits reserve represents gains and losses attributable to shareholders of AMP on the sale or acquisition of minority interests in controlled entities to or from entities outside the AMP group.
2 The profits reserve represents profits of AMP Limited transferred to a separate reserve to preserve their profit character. Such profits are available to enable payment of dividends in future years.
3 In 2024, the AMP group updated its accounting treatment of gains/(losses) relating to certain hedge instruments as well as tax impacts relating to defined benefit plans. This has resulted in an
immaterial adjustment to opening equity balances.
Consolidated statement of changes in equity
for the year ended 31 December 2024
77
AMP 2024 Annual report
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Financial report
Additional information
Equity attributable to shareholders of AMP Limited
Contributed
equity
Share-
based
payment
reserve
Capital
profits
reserve 1
Profits
reserve 2
Fair value
reserve
Cash flow
hedge
reserve
Foreign
currency
translation
and hedge
of net
investments
reserves
Total
reserves
Accumulated
losses
Total
equity
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
2023
Balance at the beginning of the year
5,002
116
(32)
–
(127)
265
75
297
(1,128)
4,171
Adjustments 3
–
–
–
–
–
–
–
–
12
12
Adjusted balance at the beginning of the year
5,002
116
(32)
–
(127)
265
75
297
(1,116)
4,183
Profit from continuing operations 4
–
–
–
–
–
–
–
–
125
125
Profit from discontinued operations 4
–
–
–
–
–
–
–
–
140
140
Other comprehensive income/(loss) from
continuing operations
–
–
–
–
56
(135)
4
(75)
(8)
(83)
Other comprehensive loss from
discontinued operations
–
–
–
–
–
–
(7)
(7)
–
(7)
Total comprehensive income/(loss)
–
–
–
–
56
(135)
(3)
(82)
257
175
Share-based payment expense
–
9
–
–
–
–
–
9
–
9
Share purchases
(338)
(5)
–
–
–
–
–
(5)
–
(343)
Dividends paid
–
–
–
–
–
–
–
–
(145)
(145)
Transfers to profits reserve
–
–
–
22
–
–
–
22
(22)
–
Sales and acquisitions of non‑controlling interests
–
–
(2)
–
–
–
–
(2)
–
(2)
AMP Foundation charitable distribution
–
–
–
–
–
–
–
–
(3)
(3)
Balance at the end of the year
4,664
120
(34)
22
(71)
130
72
239
(1,029)
3,874
1
The capital profits reserve represents gains and losses attributable to shareholders of AMP on the sale or acquisition of minority interests in controlled entities to or from entities outside the AMP group.
2 The profits reserve represents profits of AMP Limited transferred to a separate reserve to preserve their profit character. Such profits are available to enable payment of dividends in future years.
3 In 2023, the AMP group updated its accounting treatment of interest income on credit-impaired loans as well as gains/(losses) on collateral deposits. This resulted in an immaterial adjustment to
opening equity balances.
4 Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
Consolidated statement of changes in equity
for the year ended 31 December 2024
78
2024
2023
Note
$m
$m
Cash flows from operating activities
Cash receipts in the course of operations
1,516
1,419
Cash payments in the course of operations
(2,003)
(1,907)
Dividends and distributions received 1
31
32
Interest received
1,829
1,368
Interest paid
(1,671)
(1,138)
Net movement in loans and advances
1,145
(456)
Net movement in deposits from customers
(700)
557
Income tax benefit received
69
20
Net cash provided by/(used in) operating activities
6.1
216
(105)
Cash flows from investing activities
Net (payments)/proceeds from sale or acquisition of:
— investments in financial assets
(518)
373
— operating and intangible assets
(47)
(32)
— sale of businesses 2
87
910
Net cash (used in)/provided by investing activities
(478)
1,251
Cash flows from financing activities
Net movement in borrowings – banking operations
785
(728)
Net movement in borrowings – non-banking operations
(191)
(486)
Share buy-backs
(244)
(338)
Purchase of shares relating to share-based payments arrangements
(5)
(5)
Payments for the principal portion of lease liabilities
(38)
(35)
Dividends paid
(106)
(145)
Net cash provided by/(used in) financing activities
201
(1,737)
Net decrease in cash and cash equivalents
(61)
(591)
Cash and cash equivalents at the beginning of the year
1,440
2,031
Cash and cash equivalents per Consolidated statement of financial position
1,379
1,440
1
Includes dividends and distributions received from CLPC, CLAMP, PCCP and sponsor investments.
2 Includes proceeds from the sale of the Advice business for the year ended 31 December 2024 (2023: Includes proceeds from the sale of AMP
Capital and SMSF businesses for the year ended 31 December 2023).
Consolidated statement of cash flows
for the year ended 31 December 2024
79
AMP 2024 Annual report
Overview
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Financial report
Additional information
About this report
This section outlines the structure of the AMP group, information useful to understand the
AMP group’s financial report and the basis on which the financial report has been prepared.
(a) Understanding the AMP financial report
The AMP group (AMP) is comprised of AMP Limited (the parent), a holding company incorporated and domiciled in Australia,
and the entities it controls (subsidiaries or controlled entities). The consolidated financial statements of AMP Limited include
the financial information of its controlled entities and investments in associates.
The consolidated financial report:
—
is a general purpose financial report;
—
has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards,
including Australian Accounting Interpretations adopted by the Australian Accounting Standards Board (AASB) and
International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board;
—
is presented in Australian dollars, which is AMP's functional and presentation currency, with all values rounded to the
nearest million dollars ($m), unless otherwise stated;
—
has been prepared on a going concern basis generally using a historical cost basis; however where permitted under
accounting standards, a different basis may be used, including the fair value basis;
—
presents assets and liabilities on the face of the Consolidated statement of financial position in decreasing order of liquidity
and therefore does not distinguish between current and non-current items;
—
presents reclassified comparative information where required for consistency with the current year’s presentation within
the financial report, including re-presented comparative information to reflect the impact of discontinued operations as
detailed in note 5.2.
AMP Limited is a for-profit entity and is limited by shares. The financial statements for the year ended 31 December 2024 were
authorised for issue on 14 February 2025 in accordance with a resolution of the directors.
Partnership for Advice business
On 2 December 2024, AMP announced the completion of the Partnership for Advice business creating a partnership and
ownership structure with Entireti Limited (Entireti) and AZ Next Generation Advisory Limited (AZ NGA) for the AMP Advice
business, which had previously been announced on 8 August 2024. Entireti acquired AMP’s financial advice licensees:
Charter Financial Planning Limited, Hillross Financial Services Limited, AMP Financial Planning Pty Limited, as well as its self-
licensed offer Jigsaw Support Services Pty Limited for $10.2m. AMP retains a minority interest of 30% in a new entity (Mutual
Advice Partners Pty Ltd, a subsidiary of Entireti) holding these four businesses. AZ NGA acquired AMP's equity holdings in 16
financial advice practices for $82.5m. The results of the Advice business has been classified as discontinued operations in the
Consolidated income statement (refer to note 5.2).
(b) Basis of consolidation
Entities are fully consolidated from the date of acquisition, being the date on which the AMP group obtains control, and continue
to be consolidated until the date that control ceases. Control exists where the AMP group is exposed, or has rights, to variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Income, expenses, assets, liabilities and cash flows of controlled entities are consolidated into the AMP group financial
statements, along with those attributable to the shareholders of the parent entity. All inter-company transactions are eliminated
in full, including unrealised profits arising from intra-group transactions.
Materiality
Information has been included in the financial report to the extent that it has been considered material and relevant to the
understanding of the financial statements. A disclosure is considered material and relevant if, for example:
—
the amount in question is significant because of its size or nature;
—
it is important for understanding the results of the AMP group;
—
it helps explain the impact of significant changes to the AMP group; and/or
—
it relates to an aspect of the AMP group’s operations that is important to its future performance.
Notes to the financial statements
for the year ended 31 December 2024
80
(c) Material accounting policies
The material accounting policies adopted in the preparation of the financial report are contained in the notes to the financial
statements to which they relate. All accounting policies have been consistently applied to the current year and comparative
period, unless otherwise stated. Where an accounting policy relates to more than one note or where no note is provided,
the accounting policies are set out below.
Interest income and interest expense and distribution income
Interest income and interest expense on financial assets and financial liabilities measured at amortised cost are recognised in the
Consolidated income statement using the effective interest method. Revenue from distributions is recognised when the AMP
group’s right to receive payment is established.
Foreign currency transactions
Transactions, assets and liabilities denominated in foreign currencies are translated into Australian dollars (the functional
currency) using the following applicable exchange rates:
Foreign currency amount
Applicable exchange rate
Transactions
Date of transaction
Monetary assets and liabilities
Reporting date
Non-monetary assets and liabilities carried at fair value
Date fair value is determined
Foreign exchange gains and losses resulting from translation of foreign exchange transactions are recognised in the
Consolidated income statement, except for qualifying cash flow hedges and hedges of net investments in foreign operations,
which are deferred to equity.
On consolidation the assets, liabilities, income and expenses of foreign operations are translated into Australian dollars using
the following applicable exchange rates:
Foreign currency amount
Applicable exchange rate
Income and expenses
Average exchange rate
Assets and liabilities
Reporting date
Equity
Historical date
Reserves
Reporting date
Foreign exchange differences resulting from translation of foreign operations are initially recognised in the foreign currency
translation reserve and subsequently transferred to the Consolidated income statement on disposal of the foreign operation.
(d) Critical accounting estimates and judgements
Preparation of the financial statements requires management to make judgements, estimates and assumptions about future events.
Information on critical judgements and estimates considered when applying the accounting policies can be found in the following notes:
Accounting estimates and judgements
Note description
Note #
Page
Taxes
Taxes
1.4
90
Impairment of financial assets
Expected credit losses (ECLs)
2.1
93
Financial assets and liabilities measured at fair value
Investments in other financial assets and liabilities
2.2
95
Goodwill and intangible assets
Intangibles
2.3
97
Trail commission
Payables
2.6
98
Defined benefit obligations
Defined benefit plans
4.1
120
Share-based payments
Share-based payments
4.2
121
Discontinued operations
Discontinued operations
5.2
128
Right of use assets and lease liabilities
Right of use asset and lease liabilities
6.3
135
Provisions and contingent liabilities
Provisions and contingent liabilities
6.4
137
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Additional information
1
Section
Results for the year
This section provides insights into how the AMP group has performed in the current year and provides
additional information about those individual line items in the financial statements that the directors
consider most relevant in the context of the operations of the AMP group.
Statutory measures of performance disclosed in this report are:
—
Statutory earnings per share (EPS) – basic and diluted, and
—
Profit/(loss) after tax attributable to the shareholders of AMP.
NPAT (underlying) is AMP’s key measure of business performance. This performance measure is disclosed
for each AMP operating segment within segment performance.
1.1
Segment performance
1.2
Other operating expenses
1.3
Earnings per share
1.4
Taxes
1.5
Dividends
1.1
Segment performance
The AMP group identifies its operating segments based on separate financial information that is regularly reviewed by the Chief
Executive Officer and the executive team in assessing performance and determining the allocation of resources. The operating
segments are identified according to the nature of profit generated and services provided, and their performance is evaluated
based on a post-tax operating earnings basis. On 18 April 2024, AMP announced the renaming of Master Trust to Superannuation
& Investments. Additionally, AMP completed transactions to form a new partnership and ownership structure with Entireti Limited
(Entireti) and AZ Next Generation Advisory Limited (AZ NGA) for its Advice business in 2H 2024. The Advice business has been
classified as discontinued operations for the year ended 31 December 2024.
Reportable segment
Segment description
Platforms
Platforms is a leading provider of superannuation, retirement and investment solutions, enabling advisers
and their clients to build a personalised investment portfolio on AMP’s flagship North platform. North is
an award-winning online wrap platform which continues to deliver on its commitment of strengthening
and broadening investment choice for clients and providing a contemporary platform for advisers to
manage their clients’ funds.
Superannuation &
Investments
Superannuation & Investments offers a market competitive super and pension solution across individual
and corporate super through one of the largest retail Master Trusts in Australia (SignatureSuper). The
open investment menu caters to different risk profiles with exposure to a range of professional managers
in order to meet the needs and goals of customers.
AMP Bank
AMP Bank offers residential mortgages, business financing, deposits and transactional banking services.
The Bank continues to focus on growth through its digital channels, improving the experience for both
customers and intermediaries. AMP Bank helps around 185,000 customers with their banking needs.
New Zealand
Wealth
Management
(NZWM)
New Zealand Wealth Management provides clients with a variety of wealth management solutions
including KiwiSaver, corporate superannuation, retail investments and general insurance. It also
provides financial advice and coaching under the AdviceFirst and enable.me brands.
Group
Group includes partnerships, group costs not recovered from business units, investment income and
interest expense on corporate debt.
Notes to the financial statements
for the year ended 31 December 2024
82
(a) Segment profit
Platforms
Superannuation &
Investments
AMP Bank
NZWM
Group
Total
2024
$m
$m
$m
$m
$m
$m
Segment profit/(loss) after income tax
107
67
72
37
(47)
236
Segment revenue
346
343
332
139
92
1,252
Other segment information
Income tax (expense)/benefit
(46)
(29)
(31)
(14)
37
(83)
Depreciation and amortisation
(11)
(1)
(11)
–
–
(23)
Investment income
16
12
–
–
34
62
2023 1
Segment profit/(loss) after income tax
90
53
93
34
(65)
205
Segment revenue
333
343
389
135
66
1,266
Other segment information
Income tax (expense)/benefit
(38)
(23)
(40)
(14)
40
(75)
Depreciation and amortisation
(10)
(1)
(9)
(1)
–
(21)
Investment income
14
5
–
–
64
83
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
1.1
Segment performance continued
83
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Additional information
(b) The following table allocates the disaggregated segment revenue to the group’s
operating segments (see note 1.1(a)):
Platforms
Superannuation &
Investments
AMP Bank
NZWM
Group
Total
2024
$m
$m
$m
$m
$m
$m
AUM based revenue
338
345
–
91
–
774
Net interest income
–
–
322
–
–
322
Partnerships 1
–
–
–
–
79
79
Other revenue 2
8
(2)
10
48
13
77
Total segment revenue per
segment note
346
343
332
139
92
1,252
2023 3
AUM based revenue
320
343
–
88
–
751
Net interest income
–
–
373
–
–
373
Partnerships 1
–
–
–
–
58
58
Other revenue 2
13
–
16
47
8
84
Total segment revenue per
segment note
333
343
389
135
66
1,266
1
Includes profit contributions from CLPC, CLAMP, PCCP and sponsor investments.
2 Includes AMP Bank service fees, Advice retained interest, North Guarantee impacts and NZWM other revenues.
3 Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
(c) Statutory revenue:
2024
2023 1
Statutory revenue from contracts with customers
$m
$m
Fee revenue
— Investment management and related fees
840
800
— Financial advisory fees
16
14
856
814
Other income
77
49
Total statutory revenue from contracts with customers
933
863
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
1.1
Segment performance continued
Notes to the financial statements
for the year ended 31 December 2024
84
(d) Reconciliations
Segment profit after income tax differs from profit attributable to shareholders of AMP Limited due to the exclusion of the
following items:
2024
2023 1
$m
$m
Total segment profit after income tax
236
205
Litigation and remediation related costs
(8)
(99)
Business simplification/prior year transformation cost out
(43)
(51)
Impairments
–
(10)
Other items 2
(34)
226
Amortisation of intangible assets
(2)
(4)
Discontinued operations 3
1
(2)
Net profit after tax
150
265
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
2 Includes a $36m loss on sale of AMP Advice business (2023: Includes gain on sale of AMP Capital and SMSF businesses for the year ended 31
December 2023, permanent tax differences and other one-off related impacts).
3 Includes results of the Advice business for the year ended 31 December 2024 (2023: Includes results of Advice business, AMP Capital and
SMSF businesses for the year ended 31 December 2023).
Total segment revenue differs from total revenue as follows:
2024
2023 1
$m
$m
Total segment revenue
1,252
1,266
Add back expenses netted against segment revenue
— Interest expense related to AMP Bank
1,348
1,116
— External investment manager and adviser fees paid in respect of certain assets under
management
269
348
Total revenue
2,869
2,730
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
(e) Segment assets
Segment asset information has not been disclosed because the balances are not used by the Chief Executive Officer or the
executive team for evaluating segment performance, or in allocating resources to segments.
1.1
Segment performance continued
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Additional information
Accounting policy – recognition and measurement
Revenue from contracts with customers
For AMP, revenue from contracts with customers arises primarily from the provision of investment management and financial
advisory services. Revenue is recognised when control of services is transferred to the customer at an amount that reflects
the consideration which AMP is entitled to in exchange for the services provided. As the customer simultaneously receives and
consumes the benefits as the service is provided, control is transferred over time. Accordingly, revenue is recognised over time.
Fee rebates provided to customers are recognised as a reduction in fee revenue.
Investment management and related fees
Fees are charged to customers in connection with the provision of investment management and other related services. These
performance obligations are satisfied on an ongoing basis, usually daily, and revenue is recognised as the service is provided.
Financial advisory fees
Financial advisory fees primarily consist of fee-for-service revenue which is earned for providing customers with financial
advice and performing related advisory services. These performance obligations are satisfied over time. Accordingly, revenue
is recognised over time.
1.2
Other operating expenses
2024
2023 1
$m
$m
Information technology and communication
(112)
(118)
Professional and consulting fees
(117)
(118)
Amortisation of intangibles
(32)
(24)
Depreciation of property, plant and equipment
(35)
(44)
Other expenses 2
(86)
(118)
Total other operating expenses
(382)
(422)
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
2 Includes expenses relating to marketing, regulatory fees, various other service fees, utilities and other operational expenses.
1.1
Segment performance continued
Notes to the financial statements
for the year ended 31 December 2024
86
1.3
Earnings per share
Basic earnings per share
Basic earnings per share is calculated based on Profit attributable to shareholders of AMP and the weighted average
number of ordinary shares outstanding.
Diluted earnings per share
Diluted earnings per share is based on Profit attributable to shareholders of AMP and the weighted average number
of ordinary shares outstanding after adjustments for the effects of all dilutive potential ordinary shares, such as options
and performance rights.
2024
2023 1
$m
$m
Profit/(loss) attributable to shareholders of AMP
Continuing operations
180
125
Discontinued operations
(30)
140
Profit attributable to shareholders of AMP
150
265
2024
2023
millions
millions
Weighted average number of ordinary shares for basic EPS 2
2,625
2,860
Add: potential ordinary shares considered dilutive
45
42
Weighted average number of ordinary shares used in the calculation of dilutive earnings
per share
2,670
2,902
2024
2023 1
cents
cents
Earnings per share
Basic
5.7
9.3
Diluted
5.6
9.1
Earnings per share for continuing operations
Basic
6.9
4.4
Diluted
6.8
4.3
Earnings per share for discontinued operations
Basic
(1.2)
4.9
Diluted
(1.2)
4.8
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
2 The weighted average number of ordinary shares outstanding is calculated after deducting the weighted average number of treasury shares
held during the year.
87
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1.4
Taxes
Our taxes
This sub-section outlines the impact of income taxes on the results and financial position of AMP. In particular:
—
the impact of tax on the reported result;
—
amounts owed to/receivable from the tax authorities; and
—
deferred tax balances that arise due to differences in the tax and accounting treatment of balances recorded in the
financial report.
These financial statements include the disclosures relating to tax required under accounting standards. Further information on
AMP’s tax matters can be found in the AMP Tax Report at amp.com.au/shares.
(a) Income tax (expense)/benefit
The following table provides a reconciliation of differences between prima facie tax calculated as 30% of the profit or loss before
income tax for the year and the income tax expense or benefit recognised in the Consolidated income statement for the year.
2024
2023 1
$m
$m
Profit before tax
242
79
Prima facie income tax at 30%
(73)
(24)
Non-deductible expenses
(12)
(21)
Non-taxable income
27
21
Other items
(17)
33
Over provided in previous years
11
36
Differences in overseas tax rates
2
1
Income tax (expense)/benefit
(62)
46
Current tax benefit
–
69
Deferred tax expense
(62)
(23)
Income tax (expense)/benefit
(62)
46
1
Results for the year ended 31 December 2023 have been re-presented for consistency to be on a continuing operations basis.
(b) Analysis of deferred tax balances
2024
2023
$m
$m
Analysis of deferred tax assets
Expenses deductible in the future years
134
226
Unrealised investment losses
33
29
Losses available for offset against future taxable income
397
352
Lease liabilities
148
159
Capitalised software expenses 1
54
59
Total deferred tax assets
766
825
DTL offset
(164)
(185)
Net deferred tax assets
602
640
Analysis of deferred tax liabilities
Unrealised investment gains
44
61
Right of use assets
71
97
Unearned revenue
46
30
Other
19
13
Total deferred tax liabilities
180
201
Offset against DTAs
(164)
(185)
Net deferred tax liabilities
16
16
1
Capitalised software expenses are re-presented on a net of accounting and tax costs basis with accounting cost basis for intangible assets
previously classified as deferred tax liabilities.
Notes to the financial statements
for the year ended 31 December 2024
88
(c) Amounts recognised directly in equity
2024
2023
$m
$m
Income tax benefit related to items taken directly to equity during the year
7
38
(d) Unused tax losses not recognised
2024
2023
$m
$m
Revenue losses
219
212
Capital losses 1
1,402
980
1
Unused capital losses not recognised for 2024 do not include the projection or outcomes from equity sales during the year.
Accounting policy – recognition and measurement
Income tax expense
Income tax expense is the tax payable on taxable income for the current period based on the income tax rate for each
jurisdiction and adjusted for changes in deferred tax assets and liabilities. These changes are attributable to:
—
temporary differences between the tax bases of assets and liabilities and their Consolidated statement of financial
position carrying amounts;
—
unused tax losses; and
—
the impact of changes in the amounts of deferred tax assets and liabilities arising from changes in tax rates or in the
manner in which these balances are expected to be realised.
Adjustments to income tax expense are also made for any differences between the amounts paid, or expected to be paid,
in relation to prior periods and the amounts provided for these periods at the start of the current period.
Any tax impact on income and expense items that are recognised directly in equity is also recognised directly in equity.
Deferred tax
Deferred tax assets and liabilities are recognised for temporary differences and are measured at the tax rates which
are expected to apply when the assets are recovered or liabilities are settled, based on tax rates that have been enacted
or substantively enacted for each jurisdiction at the reporting date. Deferred tax assets and liabilities are not discounted
to present value.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Tax consolidation
AMP Limited and its wholly owned Australian controlled entities are part of a tax-consolidated group, with AMP Limited being
the head entity (the company). A tax funding agreement has been entered into by the head entity and the controlled entities
in the tax-consolidated group and requires entities to fully compensate the company for current tax liabilities and to be fully
compensated by the company for any current or deferred tax assets in respect of tax losses arising from external transactions
occurring after 30 June 2003, the implementation date of the tax-consolidated group.
Global minimum top-up tax
In 2021, the Organisation for Economic Co-operation and Development (OECD) released Global Anti-Base Erosion (GLoBE)
Model rules (Pillar Two) which introduced new ‘top-up’ taxing mechanisms for multinational enterprises (MNEs) that are within
the scope of the rules. Under these rules, MNEs will be liable to pay a top-up tax reflecting the difference between their GLoBE
effective tax rate per jurisdiction and the 15% minimum tax rate.
During 2024, the Australian equivalent Pillar Two legislation was enacted by the Federal Government which is effective for the
Group for the financial year ended 31 December 2024. Certain other jurisdictions in which the Group has presence have not
enacted or substantively enacted equivalent rules. The Group has subsidiaries in New Zealand and Luxembourg where Pillar
Two has been enacted into domestic law. Pillar Two legislation in New Zealand was not effective at the reporting date. On
current assessment, the Group does not expect any liability to Pillar Two top-up tax to arise. This assessment is based on the
transitional safe harbour rules applying. The temporary exception to recognising and disclosing information about deferred
tax assets and deferred tax liabilities in respect of Pillar Two is adopted at 31 December 2024 as required by amendments to
IAS 12 / AASB 112 Income Taxes issued by the International Accounting Standards Board (IASB) and the Australian Accounting
Standards Board (AASB) respectively.
1.4
Taxes continued
89
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Additional information
Critical accounting estimates and judgments
The AMP group is subject to taxes in Australia and other jurisdictions where it has operations. The application
of tax law to the specific circumstances and transactions of the AMP group requires the exercise of judgment
by management. The tax treatments adopted by management in preparing the financial statements may
be impacted by changes in legislation and interpretations or be subject to challenge by tax authorities.
Judgment is also applied by management in setting assumptions used to forecast future profitability in order
to determine the extent to which the recovery of carried forward tax losses and deductible temporary
differences are probable for the purpose of meeting the criteria for recognition as deferred tax assets (DTAs).
Future profitability may differ from forecasts which could impact management’s expectations in future periods
with respect to the recoverability of DTAs and result in DTA impairments or reversals of prior DTA impairments.
1.5
Dividends
Dividends paid and proposed during the year are shown in the table below:
2024
2024
2023
2023
Final
Interim
Final
Interim
Dividend per share (cents)
1.0
2.0
2.0
2.5
Franking percentage
20%
20%
20%
20%
Dividend amount ($m)
25
51
55
70
Payment date
3 April 2025
27 September 2024
4 April 2024
29 September 2023
2024
2023
$m
$m
Dividends paid
Final dividend on ordinary shares
55
75
Interim dividend on ordinary shares
51
70
Total dividends paid
106
145
Dividend franking credits
Franking credits available to shareholders are $47m (2023: $58m), based on a tax rate of 30%. This amount is calculated from
the balance of the franking account as at the end of the reporting period.
AMP Limited's ability to utilise the franking account credits depends on meeting Corporations Act 2001 requirements to declare
dividends. The impact of the proposed dividend will be to reduce the balance of franking credit account by $2m.
Franked dividends are franked at a tax rate of 30%.
1.4
Taxes continued
Notes to the financial statements
for the year ended 31 December 2024
90
2
Section
Loans and advances, investments, intangibles and working capital
This section highlights the AMP group’s assets and working capital used to support the AMP group’s
activities.
2.1
Loans and advances
2.2
Investments in other financial assets and liabilities
2.3
Intangibles
2.4
Other assets
2.5
Receivables
2.6
Payables
2.7
Fair value information
2.1
Loans and advances
(a) Loans and advances
2024
2023
$m
$m
Housing loans
23,280
24,386
Business finance loans
231
244
Total gross loans and advances 1 2
23,511
24,630
Less: Provisions for impairment
Individual provisions
– Housing loans
(1)
(2)
– Business finance loans
(48)
(54)
Collective provisions
(39)
(44)
Total provisions for impairment
(88)
(100)
Total net loans and advances
23,423
24,530
Movement in provisions:
Individual provisions
Balance at the beginning of the year
56
66
Net provisions raised during the year
1
1
Bad debts written off
(1)
(1)
Provision released
(7)
(10)
Balance at the end of the year
49
56
Collective provision
Balance at the beginning of the year
44
35
Net (decrease)/increase in provision
(5)
9
Balance at the end of the year
39
44
1
Total gross loans and advances include net capitalised costs and trail commissions (refer to note 2.6 for details) of $189m (2023: $134m).
2 Total gross loans and advances of $17,586m (2023: $18,498m) is expected to be received more than 12 months after the reporting date.
91
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(b) Expected credit losses
The following table provides the changes to expected credit losses (ECLs) relating to loans and advances during the year.
Stage 1
Stage 2
Stage 3
Total
Performing
Performing
Non-performing
2024
$m
$m
$m
$m
Balance at the beginning of the year
16
15
69
100
Transferred to/(from) Stage 1 (12-months ECL)
11
(4)
(7)
–
Transferred to/(from) Stage 2 (lifetime ECL not credit impaired)
(1)
3
(2)
–
Transferred to/(from) Stage 3 (lifetime ECL credit impaired)
–
(3)
3
–
Net (released)/increased provisions
(11)
2
5
(4)
Bad debts written off
–
–
(1)
(1)
Release of provision for business finance loans
–
–
(7)
(7)
Balance at the end of the year
15
13
60
88
2023
Balance at the beginning of the year
18
12
71
101
Transferred to/(from) Stage 1 (12-months ECL)
7
(4)
(3)
–
Transferred to/(from) Stage 2 (lifetime ECL not credit impaired)
(1)
7
(6)
–
Transferred to/(from) Stage 3 (lifetime ECL credit impaired)
(1)
(3)
4
–
Net (released)/increased provisions
(7)
3
11
7
Bad debts written off
–
–
(1)
(1)
Release of provision for business finance loans
–
–
(7)
(7)
Balance at the end of the year
16
15
69
100
Accounting policy – recognition and measurement
Financial assets measured at amortised cost – loans and advances and debt securities
Loans and advances and debt securities are measured at amortised cost when both of the following conditions are met:
—
the financial asset is held within a business model with the objective to hold financial assets in order to collect contractual
cash flows; and
—
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Financial assets measured at amortised cost are initially recognised at fair value plus transaction costs that are directly
attributable to the acquisition or issue of the financial asset. These assets are subsequently recognised at amortised cost
using the effective interest rate method. Gains and losses are recognised in profit or loss when the asset is derecognised,
modified or impaired.
Loans and advances are financial assets with fixed or determinable payments that are not quoted in an active market.
They arise when AMP Bank provides money directly to a customer, including loans and advances to advisers, and with
no intention of trading the financial asset. Loans and advances are initially recognised at fair value, including direct and
incremental transaction costs relating to loan origination. They are subsequently measured at amortised cost using the
effective interest method, less any provision for impairment.
2.1
Loans and advances continued
Notes to the financial statements
for the year ended 31 December 2024
92
Impairment of financial assets
An allowance for expected credit losses (ECLs) is recognised for financial assets measured at amortised cost, debt securities
measured at fair value through other comprehensive income (FVOCI) and loan commitments. ECLs are probability weighted
estimates of credit losses and are measured as the present value of all cash shortfalls discounted at the effective interest rate
of the financial instrument. The key elements in the measurement of ECLs are as follows:
—
PD – the probability of default is an estimate of the likelihood of default over a given time horizon.
—
EAD – the exposure at default is an estimate of the exposure at a future default date, taking into account expected
changes in the exposure after the reporting date.
—
LGD – loss given default is an estimate of the loss arising in the case where default occurs at a given time. It is based on the
difference between cash flows due to the group in accordance with the contract and the cash flows that the group expects
to receive, including from the realisation of any collateral.
The group estimates these elements using appropriate credit risk models taking into consideration a number of factors,
including the internal and external credit ratings of the assets, nature and value of collateral and forward-looking macro-
economic scenarios.
The group applies a three-stage approach to measure the ECLs as follows:
Stage 1 (12-month ECL)
The group collectively assesses and recognises a provision at an amount equal to 12-month ECL when financial assets
are current and/or have had a good performance history and are of low credit risk. It includes financial assets where the
credit risk has improved and the financial assets have been reclassified from Stage 2 or even Stage 3 based on improved
performance observed over a predefined period of time. A financial asset is considered to have low credit risk when its
credit risk rating is equivalent to the globally understood definition of ‘investment grade’.
Stage 2 (Lifetime ECL – not credit impaired)
The group collectively assesses and recognises a provision at an amount equal to lifetime ECL on financial assets where
there has been a significant increase in credit risk since initial recognition but the financial assets are not credit impaired.
The quantitative criteria used to determine a significant increase in credit risk is a series of relative and absolute thresholds.
Financial assets that were 30 days past due at least once over the last six months are deemed to have significant increase
in credit risk since initial recognition. For loans and advances, other risk factors like hardship, loan to value ratio (LVR) and
loan to income ratio (LTI) are also considered in order to determine a significant increase in credit risk.
Stage 3 (Lifetime ECL – credit impaired)
The group measures loss allowances at an amount equal to lifetime ECL on financial assets that are determined to be credit
impaired based on objective evidence of impairment. Financial assets are classified as impaired when payment is 90 days past
due or when there is no longer reasonable assurance that principal or interest will be collected in their entirety on a timely basis.
Critical accounting estimates and judgments
Impairment of financial assets
The impairment provisions (individual and collective) are outputs of ECL models with a number of underlying
assumptions regarding the choice of variable inputs and their interdependencies. Elements of the ECL models
that are considered accounting estimates and judgements include:
—
the AMP group’s internal credit risk grading which assigns PDs to the individual credit rating grades;
—
the AMP group’s estimates of LGDs arising in the event of default;
—
the AMP group’s criteria for assessing if there has been a significant increase in credit risk;
—
development of ECL models, including the various formulas, choice of inputs and assumptions; and
—
determination of associations between macroeconomic scenarios and their probability weightings, to derive
the economic inputs into the ECL models.
—
Management overlay has been applied to best estimate where required.
Future outcomes and macro-economic conditions which differ from management’s assumptions and estimates
could result in changes to the timing and amount of credit losses to be recognised.
2.1
Loans and advances continued
93
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Overview
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Additional information
2.2
Investments in other financial assets and liabilities
2024
2023
$m
$m
Other financial assets measured at fair value through profit or loss
Equity securities
17
12
Debt securities 1
315
315
Unlisted managed investment schemes 1
216
208
Derivative financial assets
97
323
Total other financial assets measured at fair value through profit or loss
645
858
Other financial assets measured at fair value through other comprehensive income
Debt securities 2
4,569
3,819
Total other financial assets measured at fair value through other comprehensive income
4,569
3,819
Other financial assets measured at amortised cost
Debt securities 1
677
679
Other financial assets
6
12
Total other financial assets measured at amortised cost
683
691
Total other financial assets
5,897
5,368
Other financial liabilities measured at fair value through profit or loss
Derivative financial liabilities
141
116
Collateral deposits held
20
63
Total other financial liabilities measured at fair value through profit or loss
161
179
Other financial liabilities measured at amortised cost
Other financial liabilities
4
–
Total other financial liabilities measured at amortised cost
4
–
Total other financial liabilities
165
179
1
$7m (2023: $7m) of debt securities and $54m (2023: $47m) of unlisted managed investment schemes are held by AMP Foundation for
charitable purposes in accordance with the AMP Foundation Trust Deed.
2 Debt securities measured at fair value through other comprehensive income are assets of AMP Bank.
Accounting policy – recognition and measurement
Recognition and derecognition of financial assets and liabilities
Financial assets and financial liabilities are recognised at the date the AMP group becomes a party to the contractual
provisions of the instrument. At initial recognition, financial assets are classified as subsequently measured at fair value through
profit or loss, fair value through other comprehensive income (OCI), or amortised cost. The classification of financial assets
at initial recognition depends on the financial asset’s contractual cash flow characteristics and the group’s business model for
managing them.
Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or are
transferred. A transfer occurs when substantially all the risks and rewards of ownership of the financial asset are passed
to an unrelated third party. Financial liabilities are derecognised when the obligation specified in the contract is discharged,
cancelled or expires.
Financial assets measured at fair value through profit or loss
Financial assets measured on initial recognition as financial assets measured at fair value through profit or loss are initially
recognised at fair value, determined as the purchase cost of the asset, exclusive of any transaction costs. Transaction costs
are expensed as incurred in profit or loss. Any realised and unrealised gains or losses arising from subsequent measurement
at fair value are recognised in the Consolidated income statement in the period in which they arise.
Notes to the financial statements
for the year ended 31 December 2024
94
Financial assets measured at fair value through profit or loss – debt securities
Debt securities can be irrevocably designated, at initial recognition, as measured at fair value through profit or loss where
doing so would eliminate or significantly reduce a measurement or recognition inconsistency or otherwise results in more
relevant information. Fair value on initial recognition is determined as the purchase cost of the asset, exclusive of any
transaction costs. Transactions costs are expensed as incurred in profit or loss. Subsequent measurement is determined
with reference to the bid price at the reporting date. Any realised and unrealised gains or losses arising from subsequent
measurement at fair value are recognised in the Consolidated income statement in the period in which they arise.
Financial assets measured at fair value through OCI – debt securities
Debt securities are measured at fair value through OCI when both of the following conditions are met:
—
the instrument is held within a business model, the objective of which is achieved by both collecting contractual cash flows
and selling financial assets; and
—
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Fair value through OCI instruments are subsequently measured at fair value with gains and losses arising due to changes
in fair value recognised in OCI. Interest income and foreign exchange gains and losses and impairment losses or reversals
are recognised in profit or loss in the same manner as for financial assets measured at amortised cost. The remaining fair
value changes are recognised in OCI. The accumulated gains or losses recognised in OCI are recycled to profit and loss
upon derecognition of the assets.
The group classifies debt securities held by AMP Bank under this category.
Financial assets measured at amortised cost – debt securities
Refer to note 2.1 for details.
Critical accounting estimates and judgments
Financial assets and liabilities measured at fair value
Where available, quoted market prices for the same or similar instruments are used to determine fair value.
Where there is no market price available for an instrument, a valuation technique is used. Management applies
judgement in selecting valuation techniques and setting valuation assumptions and inputs. Further detail on the
determination of fair value of financial instruments is set out in note 2.7.
2.2
Investments in other financial assets and liabilities continued
95
AMP 2024 Annual report
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Additional information
2.3
Intangibles
Goodwill
Capitalised
costs
Distribution
networks
Total
2024
$m
$m
$m
$m
Balance at the beginning of the year
88
83
38
209
Additions through acquisitions
–
–
3
3
Additions through internal development
–
47
–
47
Reductions through disposal
–
–
(2)
(2)
Amortisation expense
–
(25)
(7)
(32)
Impairment loss 1
–
(6)
–
(6)
Balance at the end of the year
88
99
32
219
2023
Balance at the beginning of the year
70
92
36
198
Additions through acquisitions
18
–
13
31
Additions through internal development
–
27
–
27
Reductions through disposal
–
(9)
(5)
(14)
Amortisation expense
–
(24)
(6)
(30)
Impairment loss 1
–
(3)
–
(3)
Balance at the end of the year
88
83
38
209
1
Includes $4m of impairment loss related to discontinued operations (2023: $nil).
Accounting policy – recognition and measurement
Goodwill
Goodwill acquired in a business combination is recognised at cost and subsequently measured at cost less any accumulated
impairment losses. The cost represents the excess of the cost of a business combination over the fair value of the identifiable
assets acquired and liabilities assumed.
Capitalised costs
Costs are capitalised when the costs relate to the creation of an asset with expected future economic benefits which are
capable of reliable measurement. Capitalised costs are amortised on a straight-line basis over the estimated useful life of the
asset, commencing at the time the asset is first put into use or held ready for use, whichever is the earlier.
Distribution networks
Distribution networks such as customer lists, financial planner client servicing rights or other distribution-related rights, either
acquired separately or through a business combination, are initially measured at fair value and subsequently measured at cost
less amortisation and any accumulated impairment losses.
Notes to the financial statements
for the year ended 31 December 2024
96
Amortisation
Intangible assets with finite useful lives are amortised on a straight-line basis over the useful life of the intangible asset.
The estimated useful lives are generally:
Item
Useful life
Capitalised costs
Up to 10 years
Distribution networks
2 to 15 years
The useful life of each intangible asset is reviewed at the end of the period and, where necessary, adjusted to reflect
current assessments.
Impairment testing
Goodwill is tested at least annually for impairment. Other intangible assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows (cash-generating units or CGUs). An impairment loss is recognised when the CGU’s carrying amount exceeds the
CGU’s recoverable amount. When applicable, an impairment loss is first allocated to goodwill and any remainder is then
allocated to the other assets on a pro‑rata basis.
Composition of goodwill
The goodwill of $88m (2023: $88m) relates to the NZWM CGU. The annual impairment assessment for NZWM resulted in
significant headroom and there was no reasonably possible change to a key assumption used in the assessment that would
result in an impairment as at 31 December 2024.
Critical accounting estimates and judgments
Management applies judgment in selecting valuation techniques and setting valuation assumptions
to determine the:
—
acquisition date fair value and estimated useful life of acquired intangible assets;
—
allocation of goodwill to CGUs and determining the recoverable amount of the CGUs; and
—
assessment of whether there are any impairment indicators for acquired intangibles and internally
generated intangibles, where required, in determining the recoverable amount.
2.4
Other assets
2024
2023
$m
$m
Prepayments
39
29
Property, plant and equipment
14
17
Other assets
–
2
Total other assets
53
48
Current
38
27
Non-current
15
21
2.3
Intangibles continued
97
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Additional information
2.5
Receivables
2024
2023
$m
$m
Investment related receivables
24
25
Client register receivables
31
40
Collateral receivables
49
43
Trade debtors and other receivables
191
231
Sublease receivables
152
87
Total receivables 1
447
426
Current
297
316
Non-current
150
110
1
Receivables are presented net of ECL of $11m (2023: $39m).
Accounting policy – recognition and measurement
Receivables
Trade debtors, client register, sublease, collateral and other receivables are measured at amortised cost, less an allowance for
ECLs. Investment related receivables are financial assets measured at fair value through profit or loss.
The group applies a simplified approach in calculating ECLs for receivables. Therefore, the group does not track changes
in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The group has established
a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the
debtors and the economic environment.
2.6
Payables
2024
2023
$m
$m
Accrued expenses
66
69
Trade creditors and other payables 1
177
116
Total payables
243
185
Current
201
185
Non-current
42
–
1
In 2024, the group updated its treatment of trail commission payable to mortgage brokers to recognise a liability representing the present
value of expected future trail commission payments and a corresponding increase in capitalised brokerage costs within Loans and advances.
Trade creditors and other payables includes trail commissions payable of $74m.
Accounting policy – recognition and measurement
Payables
Payables are measured at the nominal amount payable. Given the short-term nature of most payables, the nominal amount
payable approximates fair value.
Critical accounting estimates and judgments
Trail commission payable – the measurement of trail commission liabilities is dependent on assumptions about
the behavioural life and future outstanding balances of the underlying transactions. A provision for trail
commissions is only recognised to the extent that the group can reliably estimate the future cash flows arising
from a past event.
Notes to the financial statements
for the year ended 31 December 2024
98
2.7
Fair value information
The following table shows the carrying amount and estimated fair values of financial instruments, including their levels in the
fair value hierarchy.
Carrying
amount
Level 1
Level 2
Level 3
Total fair
value
2024
$m
$m
$m
$m
$m
Financial assets measured at fair value
Equity securities
17
–
–
17
17
Debt securities
4,884
4,400
484
–
4,884
Unlisted managed investment schemes
216
–
105
111
216
Derivative financial assets
97
–
97
–
97
Total financial assets measured at fair value
5,214
4,400
686
128
5,214
Financial assets not measured at fair value
Loans and advances
23,423
–
–
23,434
23,434
Debt securities
677
–
677
–
677
Other financial assets
6
–
6
–
6
Total financial assets not measured at fair value
24,106
–
683
23,434
24,117
Financial liabilities measured at fair value
Derivative financial liabilities
141
–
141
–
141
Collateral deposits held
20
–
20
–
20
Guarantee liabilities
25
–
–
25
25
Total financial liabilities measured at fair value
186
–
161
25
186
Financial liabilities not measured at fair value
AMP Bank
— Deposits
20,628
–
20,726
–
20,726
— Other
6,631
14
6,709
–
6,723
Subordinated debt
202
–
218
–
218
Corporate borrowings
755
770
–
–
770
Other financial liabilities
4
–
4
–
4
Total financial liabilities not measured at fair value
28,220
784
27,657
–
28,441
99
AMP 2024 Annual report
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Additional information
Carrying
amount
Level 1
Level 2
Level 3
Total fair
value
2023
$m
$m
$m
$m
$m
Financial assets measured at fair value
Equity securities
12
–
–
12
12
Debt securities
4,134
3,601
533
–
4,134
Unlisted managed investment schemes
208
–
90
118
208
Derivative financial assets
323
–
323
–
323
Total financial assets measured at fair value
4,677
3,601
946
130
4,677
Financial assets not measured at fair value
Loans and advances
24,530
–
–
24,499
24,499
Debt securities
679
–
683
–
683
Other financial assets
12
–
12
–
12
Total financial assets not measured at fair value
25,221
–
695
24,499
25,194
Financial liabilities measured at fair value
Derivative financial liabilities
116
–
116
–
116
Collateral deposits held
63
–
63
–
63
Guarantee liabilities
32
–
–
32
32
Total financial liabilities measured at fair value
211
–
179
32
211
Financial liabilities not measured at fair value
AMP Bank
— Deposits
21,370
–
21,503
–
21,503
— Other
6,045
–
6,058
–
6,058
Subordinated debt
202
–
205
–
205
Corporate borrowings
765
778
–
–
778
Total financial liabilities not measured at fair value
28,382
778
27,766
–
28,544
2.7
Fair value information continued
Notes to the financial statements
for the year ended 31 December 2024
100
AMP’s methodology and assumptions used to estimate the fair value of financial instruments are described below:
Equity securities
The fair value of equity securities is established using valuation techniques, including the use
of recent arm’s length transactions, references to other instruments that are substantially the
same, discounted cash flow analysis and option pricing models.
Debt securities
The fair value of listed debt securities reflects the bid price at the reporting date. Listed
debt securities that are not frequently traded are valued by discounting estimated
recoverable amounts.
The fair value of unlisted debt securities is estimated using interest rate yields obtainable
on comparable listed investments. For debt securities with a maturity of less than 12 months,
par value is considered a reasonable approximation of fair value.
Loans
The estimated fair value of loans represents the discounted amount of estimated future cash
flows expected to be received, based on the maturity profile of the loans. As the loans are
unlisted, the discount rates applied are based on the yield curve appropriate to the remaining
term of the loans. The loans may, from time to time, be measured at an amount in excess of fair
value due to fluctuations on fixed rate loans. In these situations, as the fluctuations in fair value
would not represent a permanent diminution and the carrying amounts of the loans are recorded
at recoverable amounts after assessing impairment, it would not be appropriate to restate their
carrying amounts.
Unlisted managed
investment schemes
The fair value of investments in unlisted managed investment schemes is determined on the basis
of redemption price, and independent external valuation of those managed investment schemes
as appropriate at the reporting date.
Derivative financial
assets and liabilities
The fair value of financial instruments traded in active markets (such as publicly traded
derivatives) is based on quoted market prices (current bid price or current offer price)
at the reporting date. The fair value of financial instruments not traded in an active market
(eg over‑the‑counter derivatives) is determined using valuation techniques. Valuation techniques
include net present value techniques, option pricing models, discounted cash flow methods and
comparison to quoted market prices or dealer quotes for similar instruments. The models use
a number of inputs, including the credit quality of counterparties, foreign exchange spot and
forward rates, yield curves of the respective currencies, currency basis spreads between the
respective currencies, interest rate curves and forward rate curves of the underlying instruments.
Some derivatives contracts are significantly cash collateralised, thereby minimising both
counterparty risk and the group’s own non-performance risk.
Corporate
borrowings
Borrowings comprise commercial paper, drawn liquidity facilities, various floating-rate and
medium‑term notes and subordinated debt. The estimated fair value of borrowings is determined
with reference to quoted market prices. For borrowings where quoted market prices are not
available, a discounted cash flow model is used, based on a current yield curve appropriate
for the remaining term to maturity. For short-term borrowings, the par value is considered
a reasonable approximation of the fair value.
AMP Bank
deposits and other
borrowings
The estimated fair value of deposits and other borrowings represents the discounted amount
of estimated future cash flows expected to be paid based on the residual maturity of these
liabilities. The discount rate applied is based on a current yield curve appropriate for similar
types of deposits and borrowings at the reporting date.
Guarantee
liabilities
The fair value of the guarantee liabilities is determined as the net present value of future cash
flows discounted using market rates. The future cash flows are determined using risk neutral
stochastic projections based on assumptions such as mortality rate, lapse rate and asset class
allocation/correlation. The future cash flows comprise expected guarantee claims and hedging
expenses net of expected fee revenue.
Financial assets and liabilities measured at fair value are categorised using the fair value hierarchy which reflects the
significance of inputs into the determination of fair value as follows:
—
Level 1: the fair value is valued by reference to quoted prices and active markets for identical assets or liabilities.
—
Level 2: the fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (as prices) or indirectly (derived from prices).
—
Level 3: the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
2.7
Fair value information continued
101
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Additional information
For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the group determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.
There have been no significant transfers between Level 1 and Level 2 during the 2024 financial year. Transfers to and from
Level 3 are shown in the Reconciliation of Level 3 values table later in this note.
Level 3 fair values
The following table shows the valuation techniques used in measuring Level 3 fair values of financial assets measured at fair
value on a recurring basis, as well as the significant unobservable inputs used.
Type
Valuation technique
Significant unobservable inputs
Equity securities
Discounted cash flow approach utilising
cost of equity as the discount rate
Discount rate
Terminal value growth rate
Cash flow forecasts
Unlisted managed investment schemes
Discounted cash flow and income
approach
Discount rate
Terminal value growth rate
Cash flow forecasts
Guarantee liabilities
Discounted cash flow approach
Discount rate
Hedging costs
Sensitivity
The following table illustrates the impacts to profit before tax and equity resulting from reasonably possible changes
in key assumptions.
2024
2023
(+)
(-)
(+)
(-)
$m
$m
$m
$m
Financial assets 1
Equity securities
3
(3)
2
(2)
Unlisted managed investment schemes
22
(22)
24
(24)
Financial liabilities
Guarantee liabilities 2
4
(5)
3
(9)
1
Reasonably possible changes in price movements of 20% (2023: 20%) have been applied in determining the impact on profit after tax and equity.
2 Reasonably possible changes in equity market movements of 20% (2023: 20%) and bond yield movements of 100bps (2023: 100 bps) have
been applied in determining the impact on profit after tax and equity. The sensitivities disclosed are shown net of the offsetting impacts
of derivatives held as economic hedges of the guarantee liabilities.
2.7
Fair value information continued
Notes to the financial statements
for the year ended 31 December 2024
102
2.7
Fair value information continued
Reconciliation of Level 3 values
The following table shows movements in the fair values of financial instruments measured at fair value on a recurring basis
and categorised as Level 3 in the fair value hierarchy:
Balance
at the
beginning
of the year
FX gains/
(losses)
Total
gains/
(losses)
Purchases/
(deposits)
Sales/
(withdrawals) 1
Net
transfers
in/(out) 2
Balance at
the end of
the year
Total gains/
(losses) on
assets and
liabilities held
at reporting
date
2024
$m
$m
$m
$m
$m
$m
$m
$m
Assets classified as Level 3
Equity securities
12
–
9
1
(30)
25
17
4
Unlisted managed
investment schemes
118
6
4
8
(25)
–
111
10
Liabilities classified as
Level 3
Guarantee liabilities
(32)
–
6
–
1
–
(25)
6
2023
Assets classified as Level 3
Equity securities
5
–
–
7
–
–
12
–
Unlisted managed
investment schemes
133
1
(9)
3
(10)
–
118
(8)
Liabilities classified as
Level 3
Guarantee liabilities
(64)
–
18
–
14
–
(32)
18
1
A positive value in respective of guarantee liabilities represents claim payments.
2 Net transfer in of $25m relates to an ownership interest which was transferred from investments in associates as AMP no longer holds
significant influence over the investee.
103
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Additional information
3
Section
Capital structure and financial risk management
This section provides information relating to:
—
the AMP group’s capital management, equity and debt structure; and
—
exposure to financial risks – how the risks affect financial position and performance and how the risks
are managed, including the use of derivative financial instruments.
The capital structure of the AMP group consists of equity and debt. AMP determines the appropriate
capital structure in order to finance the current and future activities of the AMP group and satisfy the
requirements of the regulator. The directors review the group’s capital structure and dividend policy
regularly and do so in the context of the group’s ability to satisfy capital requirements.
3.1
Contributed equity
3.2
Interest-bearing liabilities
3.3
Financial risk management
3.4
Derivatives and hedge accounting
3.5
Capital management
3.1
Contributed equity
2024
2023
$m
$m
Ordinary share capital
Shares on issue:
Balance at the beginning of the year
2,741,080,904 (2023: 3,043,140,026) ordinary shares fully paid
4,670
5,008
Share buy-backs
209,341,065 (2023: 302,059,122) shares purchased on-market
(244)
(338)
Total contributed equity
2,531,739,839 (2023: 2,741,080,904) ordinary shares fully paid
4,426
4,670
Less treasury shares 1:
Balance at the beginning of the year
2,126,387 (2023: 2,126,387) treasury shares
(6)
(6)
Total treasury shares
2,126,387 (2023: 2,126,387) treasury shares
(6)
(6)
Balance at the end of the year
4,420
4,664
1
Held by AMP Foundation.
Holders of ordinary shares have the right to receive dividends as declared and, in the event of the winding up of the company,
to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares
held. Fully paid ordinary shares carry the right to one vote per share. Ordinary shares have no par value.
Accounting policy – recognition and measurement
Issued capital
Issued capital in respect of ordinary shares is recognised as the fair value of consideration received by the AMP Limited entity.
Incremental costs directly attributable to the issue of certain new shares are recognised in equity as a deduction, net of tax,
from the proceeds.
Treasury shares
AMP Foundation holds AMP Limited shares (treasury shares). These shares, plus any fair value movement on these shares and
any dividend income, are eliminated on consolidation.
Notes to the financial statements
for the year ended 31 December 2024
104
3.2
Interest-bearing liabilities
Interest-bearing liabilities
2024
2023
Current
Non-
current
Total
Current
Non-
current
Total
$m
$m
$m
$m
$m
$m
Interest-bearing liabilities
AMP Bank
— Deposits 1
20,134
494
20,628
20,540
830
21,370
— Other
3,012
3,619
6,631
2,941
3,104
6,045
— Subordinated debt 2
4
198
202
4
198
202
Corporate borrowings
— AMP Capital Notes 2 3
1
275
276
1
273
274
— CHF Medium Term Notes 4
–
–
–
218
–
218
— AUD Medium Term Notes 5
5
474
479
–
273
273
Total interest-bearing liabilities 6
23,156
5,060
28,216
23,704
4,678
28,382
1
Deposits comprise at-call customer deposits and customer term deposits with AMP Bank.
2 AMP Bank subordinated debt was issued on 7 October 2022 and matures on 7 October 2032.
3 AMP Capital Notes 2 (ASX: AMPPB) were issued on 23 December 2019. Subject to APRA approval, AMP has the right, but not the obligation,
to redeem all or some of the Notes on 16 December 2025, or, subject to certain conditions, at a later date. They are perpetual with no maturity
date. In certain circumstances, AMP may be required to convert some or all of the Notes into AMP ordinary shares.
4 Senior Unsecured Fixed Rate Notes of CHF 175m were issued on 3 March 2020. These Notes were fully repaid in instalments of CHF 10m on 31
August 2022, CHF 39m on 7 December 2023 and CHF 126m on 3 June 2024.
5 Senior Unsecured Medium Term Notes of $275m were issued on 9 November 2023 and mature on 9 November 2026. An additional $200m Senior
Unsecured Medium Term Notes were issued on 4 November 2024 and mature on 4 November 2027.
6 The classification of AMP Bank and corporate borrowings as current or non-current is based on the maturity of the underlying debt instruments,
interest payable, and related principal repayment obligations, which are expected to be settled within the next 12 months.
Accounting policy – recognition and measurement
Interest-bearing liabilities are initially recognised at fair value, net of transaction costs. They are subsequently measured
at amortised cost using the effective interest rate method.
It is AMP’s policy to hedge currency and interest rate risk arising on issued notes and subordinated debt. When fair value
hedge accounting is applied, the carrying amounts of borrowings and subordinated debt are adjusted for changes in fair value
related to the hedged risk for the period that the hedge relationship remains effective. Any changes in fair value for the period
are recognised in the Consolidated income statement. In cash flow hedge relationships, the borrowings are not revalued.
Finance costs include:
(i) borrowing costs:
•
interest on bank overdrafts, borrowings and subordinated debt;
•
amortisation of discounts or premiums related to borrowings;
(ii) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment
to interest costs; and
(iii) changes in the fair value of derivative hedges together with any change in the fair value of the hedged assets or liabilities
that are designated and qualify as fair value hedges, foreign exchange gains and losses and other financing-related
amounts. Changes in the fair value of derivatives in effective cash flow hedges are recognised in the cash flow hedge
reserve. The accounting policy for derivatives is set out in note 3.4.
Finance costs are recognised as expenses when incurred.
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3.3
Financial risk management
Financial risk arises from the holding of financial instruments and financial risk management activities, and is an integral part
of the AMP group’s enterprise risk management framework. The AMP Limited Board has overall responsibility for the AMP
group’s enterprise risk management framework, including the approval of AMP’s strategic plan, risk management strategy
and risk appetite.
This note discloses financial risk in accordance with the categories in AASB 7 Financial Instruments: Disclosures:
—
market risk;
—
liquidity and refinancing risk; and
—
credit risk.
These risks are managed in accordance with the board-approved risk appetite statement and the individual policies for each
risk category.
(a) Market risk
Market risk is the risk that the fair value of assets and liabilities, or future cash flows of a financial instrument, will fluctuate
due to movements in financial markets, including interest rates, foreign exchange rates, equity prices, property prices, credit
spreads, commodity prices and other financial market variables.
The following table provides information on significant market risk exposures for the AMP group, which could lead to an impact
on the AMP group’s profit after tax and shareholders’ equity position, and the management of those exposures.
Market risk
Exposures
Management of exposures and use
of derivatives
Interest rate risk
The risk of an impact on the
AMP group’s profit after tax and
equity arising from fluctuations
in the fair value or future cash
flows of financial instruments due
to changes in market interest rates.
Interest rate movements could
result from changes in the
absolute levels of interest rates,
the shape of the yield curve, the
margin between yield curves
and the changes in actual or
expected levels of inflation.
The AMP group’s long-term
borrowings, subordinated debt and
investment held in interest-bearing
securities.
The AMP group interest rate risk is managed
by entering into interest rate swaps, which
have the effect of converting investments
or borrowings from fixed to floating rates.
AMP Bank’s interest rate risk from
mismatches in the repricing terms
of assets and liabilities (term risk)
and variable rate short-term
repricing bases (basis risk).
AMP Bank uses natural offsets, interest
rate swaps and basis swaps to hedge the
mismatches within exposure limits. AMP
group’s Group Treasury team (Group
Treasury) manages the exposure in AMP
Bank by maintaining a net interest rate risk
position within the limits delegated and
approved by the AMP Bank Board.
The AMP group’s defined benefit
plan exposures, both through the
fair value of plan assets (specifically
interest-bearing assets), as well as
the valuation of defined benefit
obligations (through changes
in the discount curve used for
actuarial valuations).
The AMP group periodically reviews exposures
to interest rates arising from defined benefit
plan exposures, and considers the use
of derivatives in managing these exposures.
No derivatives were employed to manage
exposures to interest rates during the year
ended 31 December 2024.
Notes to the financial statements
for the year ended 31 December 2024
106
Market risk
Exposures
Management of exposures and use
of derivatives
Currency risk
The risk of an impact on the AMP
group’s profit after tax and equity
arising from fluctuations of the fair
value of a financial asset, liability
or commitment due to changes
in foreign exchange rates.
Foreign currency denominated
assets and liabilities.
Foreign equity accounted associates
and capital invested in overseas
operations.
Foreign exchange rate movements
on specific cash flow transactions.
The AMP group uses swaps to hedge the
foreign currency risk on foreign currency
denominated borrowings. The AMP
group utilises various hedging instruments
to hedge foreign currency risk arising
from certain investments denominated
in a foreign currency.
The AMP group may hedge material foreign
currency risk arising from cash receipts and
payments once the value and timing of the
expected cash flow is known.
In addition, the AMP group will at times
pre‑hedge any future (but not expected)
foreign currency receipts and payments,
subject to market conditions.
The AMP group’s defined benefit
plan exposures, through the value
of unhedged exposures to plan asset
denominated in foreign currencies.
AMP group periodically reviews exposures
to foreign currencies arising from defined
benefit plan exposures, and considers
the use of derivatives in managing these
exposures. No derivatives were employed
to manage exposures to foreign currencies
during the year ended 31 December 2024.
Equity price risk
The risk of an impact on the
AMP group’s profit after tax and
equity arising from fluctuations
in the fair value or future cash
flows of a financial instrument
due to changes in equity prices.
Exposure for shareholders includes
listed and unlisted shares, guarantee
liabilities and participation in equity
unit trusts.
Group Treasury may, with AMP group’s
Asset and Liability Committee (Group
ALCO) approval, use equity exposures
or equity futures or options to hedge other
enterprise‑wide equity exposures.
The AMP group’s defined benefit
plan exposures, through the value
of exposures to plan asset held in
equities, or equity-like exposures.
AMP group periodically reviews exposures
to equities arising from defined benefit
plan exposures, and considers the use
of derivatives in managing these exposures.
No derivatives were employed to manage
exposures to equities during the year ended
31 December 2024.
3.3
Financial risk management continued
(a) Market risk continued
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Sensitivity analysis
The table below includes sensitivity analysis showing how the profit after tax and equity would have been impacted by changes
in market risk variables. The analysis:
—
shows the direct impact of a reasonably possible change in market rates and is not intended to illustrate a remote, worst
case stress test scenario;
—
assumes that all underlying exposures and related hedges are included and the change in variable occurs at the reporting
date; and
—
does not include the impact of any mitigating management actions over the period to the subsequent reporting date.
The categories of risks faced and methods used for deriving sensitivity information did not change from previous years.
2024
2023
Impact
on profit
after tax
increase/
(decrease)
Impact
on equity 1
increase/
(decrease)
Impact
on profit
after tax
increase/
(decrease)
Impact
on equity 1
increase/
(decrease)
Sensitivity analysis
Change in variables
$m
$m
$m
$m
Interest rate risk
Impact of a 100 basis point
(bp) change in Australian and
international interest rates.
- 100bp
3.0
(33.6)
2.3
3.8
+100bp
(3.9)
27.4
(4.1)
(9.9)
Currency risk
Impact of a 10% movement
of exchange rates against the Australian
dollar on currency sensitive monetary
assets and liabilities.
10% depreciation of AUD
1.6
60.4
9.7
73.8
10% appreciation of AUD
(1.2)
(52.3)
(8.9)
(62.7)
Equity price risk
Impact of a 10% movement in
Australian and international equities.
Any potential impact on fees from
the AMP group’s investment-linked
business is not included.
10% increase in:
Australian equities
0.1
12.3
0.5
11.9
International equities
0.1
13.1
0.5
13.1
10% decrease in:
Australian equities
0.0
(12.2)
(1.3)
(12.7)
International equities
(0.1)
(13.0)
(1.4)
(14.0)
1
Includes both the impact on profit after tax as well as the impact of amounts that would be taken directly to equity in respect of the portion of
changes in the fair value of derivatives that qualify as cash flow hedges or net investment hedges for hedge accounting.
(b) Liquidity and refinancing risk
Risk
Exposures
Management of exposures
Liquidity risk
The risk that the AMP group is not able
to meet its obligations as they fall due
because of an inability to liquidate
assets or obtain adequate funding
when required.
The AMP group corporate debt
portfolio and AMP Bank retail
and wholesale funding sources.
Group Treasury maintains a defined
surplus of cash to mitigate refinancing
risk (for both AMP’s non-bank
corporate exposures and AMP Bank’s
specific exposures), satisfy regulatory
requirements and protect against
liquidity shocks in accordance with
the requirements of the AMP Group
Liquidity Policy. This policy is reviewed
and endorsed by Group ALCO and
approved by the AMP Limited Board.
Refinancing risk
The risk that the AMP group is not
able to refinance the full quantum
of its ongoing debt requirements
on appropriate terms and pricing.
3.3
Financial risk management continued
(a) Market risk continued
Notes to the financial statements
for the year ended 31 December 2024
108
3.3
Financial risk management continued
(b) Liquidity and refinancing risk continued
Maturity analysis
Below is a summary of the maturity profiles of AMP’s undiscounted financial liabilities and off-balance sheet items at the
reporting date, based on contractual undiscounted repayment obligations. Repayments that are subject to notice are treated
as if notice were to be given immediately.
Up to 1
1 to 5
Over 5
Not
specified
year
years
years
Total
2024
$m
$m
$m
$m
$m
Non-derivative financial liabilities
Payables
201
42
–
–
243
Borrowings 1
23,724
4,523
606
–
28,853
Lease liabilities
69
268
302
–
639
Subordinated debt 2
45
555
–
–
600
Guarantee liabilities
–
–
–
25
25
Derivative financial instruments
Interest rate swaps
12
24
64
–
100
Foreign currency forward contract
40
–
–
–
40
Futures
1
–
–
–
1
Off-balance sheet items
Credit-related loan commitments – AMP Bank 3
4,025
–
–
–
4,025
Investment commitments
–
–
–
12
12
Total undiscounted financial liabilities and
off‑balance sheet items
28,117
5,412
972
37
34,538
2023
Non-derivative financial liabilities
Payables
185
–
–
–
185
Borrowings 1
24,062
4,301
504
–
28,867
Lease liabilities
69
279
368
–
716
Subordinated debt 2
42
596
–
–
638
Guarantee liabilities
–
–
–
32
32
Derivative financial instruments
Options
4
–
–
–
4
Interest rate swaps
15
26
54
–
95
Foreign currency forward contract
2
–
–
–
2
Total return swaps
14
–
–
–
14
Futures
1
–
–
–
1
Off-balance sheet items
Credit-related loan commitments – AMP Bank 3
3,576
–
–
–
3,576
Investment commitments
–
–
–
18
18
Total undiscounted financial liabilities and
off‑balance sheet items
27,970
5,202
926
50
34,148
1
Borrowings include AMP Bank deposits.
2 Includes AMP Bank subordinated debt and AMP Capital Notes 2.
3 Credit-related loan commitments are off-balance sheet as they relate to unexercised commitments to lend to customers of AMP Bank.
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(c) Credit risk
Credit risk management is decentralised in business units within AMP, with the exception of credit risk directly and indirectly
impacting shareholder capital, which is measured and managed on an aggregate basis by Group Treasury at the AMP group
level and reported to Group ALCO.
Risk
Exposures
Management of exposures and use of derivatives
Credit risk
Credit default risk is the risk of
financial or reputational loss due
to a counterparty failing to meet
their contractual commitments
in full and on time.
Concentration of credit risk arises
when a number of financial
instruments or contracts are
entered into with the same
counterparty or where a number
of counterparties are engaged
in similar business activities that
would cause their ability to meet
contractual obligations to be
similarly affected by changes
in economic or other conditions.
Wholesale credit risk,
arising from corporate
investments held in relation
to the management of
liquidity.
Wholesale credit risk exposures arising from corporate
investments made in relation to the management of
liquidity (and related activities, including hedging
financial risks) are managed by Group Treasury in
accordance with the AMP Group Aggregate Risk
Exposures and Intra-Group Transaction Exposure
Policy, as well as the AMP Group Large Exposures
and Credit Concentration Risk Standards. The policy
is endorsed by the AMP Group ALCO and approved
by the AMP Limited Board, whilst the Standards are
approved by the AMP Group ALCO.
Credit risk arising from the
AMP group’s Australian
banking activities which
are predominantly related
to residential mortgage
lending and business
finance loans.
Wholesale credit risk exposures arising from
investments made in relation to the management
of liquidity within AMP Bank (and related activities,
including hedging financial risks) are managed by
Group Treasury in accordance with the AMP Bank
Wholesale Counterparty Credit Risk Policy. This policy
is reviewed and endorsed by the AMP Bank ALCO and
approved by the AMP Bank Limited Board. Specific
detail relating to the credit risk management of the
AMP Bank loan portfolio is outlined below.
The AMP Group Large Exposures & Credit Concentration Risk Standard sets out the assessment and determination of what
constitutes credit concentration risk. The policy sets exposure limits based on each counterparty’s credit rating (unless
special considerations are defined). Additional limits are set for the distribution of the total portfolio by credit rating bands.
Compliance with this policy is monitored and exposures and breaches are reported to senior management and the AMP
Board Risk Committee through periodic financial risk management reports.
Group Treasury may also enter into credit default swaps to hedge concentration risk against material exposures.
The exposures on interest-bearing securities and cash equivalents which impact AMP’s capital position are managed by Group
Treasury within limits set by the AMP Group Wholesale Counterparty Credit Risk Policy.
Impairment assessment
Definition of default
AMP Bank considers a financial asset defaulted and hence Stage 3 impaired when payment is 90 days past due or when there
is no longer reasonable assurance that principal or interest will be collected in their entirety on a timely basis.
AMP Bank’s internal risk grading and PD estimation process
AMP Bank’s credit risk management department runs expected credit loss models for the residential mortgage book as well
as the business finance loans. The Bank’s residential mortgage book is a portfolio with a low number of defaults. In recent
times, the Bank’s residential mortgage book has grown significantly, and a larger history of default data has been captured.
This has enabled the Bank to successfully develop its internal behavioural scorecards which have been used to replace the
benchmark PDs to better stratify the portfolio by credit risk worthiness.
Internal risk grades for the residential mortgage book are as follows:
Internal credit rating grade
Internal credit rating grade description
Performing
Not in arrears in the past six months
Past due but not impaired
Accounts in arrears but have not been past 90 days in the last six months
Impaired
90 days past due over the last six months
For business finance loans a probability of default risk grade model is applied that includes weighted risk factors such as interest
coverage ratio, revenue growth, licence compliance rating, experience in business and arrears levels. Practices on watch-list are
also downgraded. Credit judgement may be applied to arrive at the final risk grade.
3.3
Financial risk management continued
Notes to the financial statements
for the year ended 31 December 2024
110
Internal risk grades for business finance loans are as follows:
Internal risk grade
Internal risk grade description
Broadly corresponds with Standard & Poor ratings of
A to H
Sub-investment grade
BB+ to CCC
I
Impaired
D
AMP Bank’s interbank and financial institutions exposures, as well as exposures to interest-bearing securities, are based on the
external credit rating of the counterparties as follows:
Internal risk grade description
Broadly corresponds with Standard & Poor ratings of
Senior investment grade
AAA to A-
Investment grade
BBB+ to BBB-
Sub-investment grade
BB+ up to but not including defaulted or impaired
Exposure at default (EAD)
EAD is modelled by applying assumptions in relation to the amortisation of the loans based on scheduled principal and interest
repayments, except for Stage 3 loans.
Loss given default (LGD)
For the residential mortgage portfolio, the key driver for the LGD calculation is the value of the underlying property since,
in a foreclosure scenario, the proceeds from the sale of a property are secured by AMP Bank to repay the loan. The value
of the underlying residential property is captured via the LVR, which applies both the changes in loan balance and estimated
value of the collateral using market data and indices. Both floor and haircuts are applied to provide for model risk.
For business finance loans, the LGD is calculated via assumptions to the reduction in valuations of security values (being a multiple
of their recurring cash flows) in the event of default, such as client run-off or deterioration in valuation due to compliance issues.
In addition, haircuts are applied to capture the volatility observed in the register values in the event of default but also general
volatility in valuations over time.
Grouping of financial assets for expected credit losses (ECL) calculation
AMP Bank calculates ECL on an individual basis on all Stage 3 assets, and interbank and debt securities measured at FVOCI.
For all other asset classes ECL is calculated on a collective basis, taking into account risk factors for each loan to calculate
the ECL estimate and then aggregating the estimated number for each relevant portfolio.
Forward-looking information
AMP Bank’s ECL model incorporates a number of forward-looking macroeconomic factors (MEF) that are reviewed
on a quarterly basis and approved by the Credit Risk Committee (CRC). The MEF include unemployment, property prices,
ASX All Ordinaries index and Reserve Bank of Australia cash rate.
At least three different scenarios with fixed weightings are used in the model. The weightings are reviewed on an annual basis.
The ECL is calculated as the probability weighted average of the provision calculated for each economic scenario.
Management overlay
Management overlay is required to mitigate model risk and any systemic risk that is not recognised by the model.
The management overlays are reviewed on an annual basis or more frequently if required and presented to the CRC and
Board Audit Committee (BAC) for endorsement.
Write-offs
Financial assets are written off either partially or in their entirety only when there is no reasonable expectation of recovery.
Recovery actions can cease if they are determined as being no longer cost effective or in some situations where the customers
have filed for bankruptcy.
Credit risk of the loan portfolio in AMP Bank
AMP Bank is predominantly a lender for residential properties for both owner occupied and investment purposes. In relation
to each loan application, AMP Bank completes a credit assessment, including cost of living expense assessment, and requires
valuation of the proposed security property.
AMP Bank’s CRC and Board Risk Committee (BRC) oversee trends in lending exposures and compliance with the risk appetite
statement. AMP Bank secures its housing loans with mortgages over relevant properties and as a result, manages credit risk
on its loans with conservative lending policies and particular focus on the LVR. The LVR is calculated by dividing the total loan
amount outstanding by the lower of AMP Bank’s approved valuation amount or the purchase price. Loans with LVR greater
than 80% are fully mortgage insured. Mortgage insurance is provided by Helia Insurance Pty Limited (formerly Genworth
3.3
Financial risk management continued
(c) Credit risk continued
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Mortgage Insurance Australia Ltd) and QBE Lenders Mortgage Insurance Ltd, who are regulated by APRA. AMP Bank has
strong relationships with both insurers and has experienced minimal levels of historic claim rejections and reductions.
The average LVR at origination of AMP Bank’s loan portfolio for existing and new business is set out in the following table:
Existing
business
New
business
Existing
business
New
business
2024
2024
2023
2023
LVR %
%
%
%
%
0 – 50
21
10
20
22
51 – 60
14
9
14
13
61 – 70
19
12
20
16
71 – 80
36
49
36
39
81 – 90
9
16
8
8
91 – 95
1
4
1
2
> 95
–
–
1
–
Renegotiated loans
Where possible, AMP Bank seeks to renegotiate loans for borrowers seeking hardship relief rather than take possession of
collateral. This may involve capitalising interest repayments for a period and increasing the repayment arrangement for the
remaining term of the loan. Once the terms have been renegotiated, the loan is no longer considered past due or an impaired
asset unless it was greater than 90 days in arrears in the previous six months or a specific provision has been raised for the
loan. As at 31 December 2024, AMP Bank had assisted customers by renegotiating loans of $174m (2023: $155m).
Collateral and master netting or similar agreements
The AMP group obtains collateral and utilises netting agreements to mitigate credit risk exposures from certain counterparties.
(i)
Derivative financial assets and liabilities
The credit risk of derivatives is managed in the context of the AMP group’s overall credit risk policies and includes the use
of Credit Support Annexes to derivative agreements which facilitate the bilateral posting of collateral as well as the clearing
of derivative positions on the London Clearing House.
Certain derivative assets and liabilities are subject to legally enforceable master netting arrangements, such as an International
Swaps and Derivatives Association (ISDA) master netting agreement. In certain circumstances, for example when a credit event
such as a default occurs, all outstanding transactions under an ISDA agreement are terminated, the termination value is assessed
and only a single net amount is payable in settlement of all transactions.
An ISDA agreement does not automatically meet the criteria for offsetting in the Consolidated statement of financial position.
This is because the AMP group, in most cases, does not have any current legally enforceable right to offset recognised amounts.
If these netting arrangements were applied to the derivative portfolio, the derivative assets of $97m would be reduced by $14m
to the net amount of $83m and derivative liabilities of $141m would be reduced by $29m to the net amount of $112m (2023:
derivative assets of $323m would be reduced by $35m to the net amount of $288m and derivative liabilities of $116m would not
be reduced).
(ii)
Other collateral
The AMP group has collateral arrangements in place with some counterparties in addition to collateral deposits held with respect
to repurchase agreements. The amount and type of collateral required by AMP Bank on housing loans depends on an assessment
of the credit risk of the counterparty. Guidelines are in place covering the acceptability and valuation of each type of collateral.
AMP Bank holds collateral against its loans and advances primarily in the form of mortgage interests over property, other
registered securities over assets and guarantees.
Management monitors the market value of collateral and may request additional collateral in accordance with the underlying
agreement. In the event of customer default, AMP Bank can enforce any security held as collateral against the outstanding claim.
Any loan security is usually held as mortgagee in possession while AMP Bank seeks to realise its value through the sale of the
property. Therefore, AMP Bank does not hold any real estate or other assets acquired through the repossession of collateral.
Collateral generally consists of 11am loans and deposits and is exchanged between the counterparties to reduce the exposure
from the net fair value of derivative assets and liabilities between the counterparties. As at 31 December 2024, there was $20m
(2023: $63m) of collateral deposits (due to other counterparties) and $49m (2023: $43m) of collateral loans (due from other
counterparties) relating to derivative assets and liabilities.
3.3
Financial risk management continued
(c) Credit risk continued
Notes to the financial statements
for the year ended 31 December 2024
112
3.4
Derivatives and hedge accounting
The group is exposed to certain risks relating to its ongoing business operations. To mitigate the risks, the group uses derivative
financial instruments, such as cross-currency swaps and interest rate swaps. When the group designates certain derivatives
to be part of a hedging relationship, and they meet the criteria for hedge accounting, the hedges are classified as:
—
cash flow hedges;
—
fair value hedges; or
—
net investment hedges.
Derivative financial instruments are held for risk and asset management purposes only and not for the purpose of speculation.
Not all derivatives held are designated as hedging instruments. The group’s risk management strategy and how it is applied
to manage risk is explained further in note 3.3.
The following table sets out the notional amount of derivative instruments designated in a hedge relationship by relationship
type as well as the related carrying amounts.
2024
2023
Notional
Fair value
Fair value
Notional
Fair value
Fair value
amount
assets
liabilities
amount
assets
liabilities
$m
$m
$m
$m
$m
$m
Derivatives at fair value through profit
and loss
Interest rate swaps
7,407
9
(12)
10,192
36
(34)
Foreign currency forward contract
110
–
(8)
69
1
–
Total derivatives at fair value through profit
and loss
7,517
9
(20)
10,261
37
(34)
Derivatives designed as cash flow hedges
Interest rate swaps
12,470
34
(29)
16,726
148
–
Cross-currency interest rate swaps
–
–
–
191
26
–
Total derivatives designed as cash
flow hedges
12,470
34
(29)
16,917
174
–
Hedges of net investments in foreign
operations
Foreign currency forward contract
936
3
28
631
15
–
Total hedges of net investments in foreign
operations
936
3
28
631
15
–
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Fair value hedge relationships resulted in the following changes in the values used to recognise hedge ineffectiveness for the year:
2024
2023
$m
$m
Loss on hedging instrument
(26)
(4)
Gain on hedged items attributable to the hedged risk
26
5
Gain after ineffectiveness
–
1
Derivative instruments accounted for as cash flow hedges
The group is exposed to variability in future interest cash flows on non-trading assets and liabilities which bear interest at fixed
and variable rates. The group uses interest rate swaps to manage interest rate risks and many of the swaps are cash flow hedges
for accounting purposes.
Methods used to test hedge effectiveness and establish the hedge ratio include regression analysis and for some portfolio
hedge relationships, a comparison to ensure the expected interest cash flows from the portfolio exceed those of the hedging
instruments. The main potential source of hedge ineffectiveness from cash flow hedges is mismatches in the terms of hedged
items and hedging instruments, for example the frequency and timing of when interest rates are reset.
During the year, the AMP group recognised $nil (2023: $nil) due to ineffectiveness on derivative instruments designated as cash
flow hedges.
Derivative instruments accounted for as fair value hedges
Fair value hedges are used to protect against changes in the fair value of financial assets and financial liabilities due to movements
in exchange rates and interest rates.
Hedge effectiveness is assessed by comparing the overall changes in the fair value of the hedging instrument against the
changes in the fair value of the hedged items attributable to the hedged risks. The main potential source of ineffectiveness
on fair value hedges is currency basis spread, which is included in the valuation of the hedging instrument but excluded from
the value of the hedged item.
Hedges of net investments in foreign operations
The group hedges its exposure to changes in exchange rates on the value of its foreign currency denominated partnerships.
Hedge effectiveness is assessed based on the overall changes in the fair value of the forward contract, primarily using the
cumulative dollar offset method.
During the year, the AMP group recognised $nil (2023: $nil) due to the ineffective portion of hedges relating to investments
in foreign operations.
The following table sets out the maturity profile of derivative instruments in a hedge relationship.
0 to 3
months
3 to 12
months
1 to 5
years
Over 5
years
Total
2024
$m
$m
$m
$m
$m
Interest rate swaps
1,291
4,675
2,849
3,655
12,470
Foreign currency forward contract
206
730
–
–
936
Total
1,497
5,405
2,849
3,655
13,406
2023
Interest rate swaps
2,925
7,820
3,642
2,339
16,726
Cross-currency interest rate swaps
–
191
–
–
191
Foreign currency forward contract
62
569
–
–
631
Total
2,987
8,580
3,642
2,339
17,548
3.4
Derivatives and hedge accounting continued
Notes to the financial statements
for the year ended 31 December 2024
114
3.4
Derivatives and hedge accounting continued
Accounting policy – recognition and measurement
Derivative financial instruments
Derivative financial instruments are initially recognised at fair value exclusive of any transaction costs on the date a derivative
contract is entered into and are subsequently remeasured to their fair value at each reporting date. Derivatives are recognised
as assets when their fair values are positive and as liabilities when their fair values are negative. Any gains or losses arising
from changes in the fair values of derivatives, except those that qualify as effective hedges, are immediately recognised in the
Consolidated income statement.
Hedge accounting
AMP continues to apply the hedge accounting requirements under AASB 139 Financial instruments: Recognition and Measurement.
Cash flow hedges
The effective portion of changes in the fair value of cash flow hedges is recognised (including related tax impacts) in Other
comprehensive income. The ineffective portion is recognised immediately in the Consolidated income statement. The balance
of the cash flow hedge reserve in relation to each particular hedge is transferred to the Consolidated income statement in
the period when the hedged item affects profit or loss. Hedge accounting is discontinued when a hedging instrument expires
or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting. The cumulative gain or loss
existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the
Consolidated income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that
was reported in equity is immediately transferred to the Consolidated income statement.
Fair value hedges
Changes in the fair value of fair value hedges are recognised in the Consolidated income statement, together with any
changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. If a hedge no longer meets
the criteria for hedge accounting, the cumulative gains and losses recognised on the hedged item will be amortised over the
remaining life of the hedged item.
Net investment hedges
The effective portion of changes in the fair value of net investment hedges is recognised (including related tax impacts)
in Other comprehensive income. Any ineffective portion is recognised immediately in the Consolidated income statement.
The cumulative gain or loss existing in equity remains in equity until the foreign investment is disposed of.
115
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Additional information
AMP’s capital management strategy is to optimise shareholder value by managing the level, mix and use of capital resources.
The primary objective is to ensure that there are sufficient capital resources to maintain and grow the business and maintain
AMP’s credit rating, in accordance with the Group’s risk appetite.
The Group operates under a NOHC structure, which is subject to capital requirements set and monitored by APRA and ASIC,
including certain prudential requirements regarding:
—
the proportion of high quality capital such as share capital and retained profits; and
—
reductions in the Group’s capital base requiring APRA’s written approval (for example, planned payment of dividends that
exceed the prior 12 months’ earnings, or other forms of returns of capital).
Calculation of capital resources
Group CET1 capital includes ordinary equity less intangibles, equity investments, net deferred tax assets and other assets
required to be removed by regulation. The table below summarises the capital position as at reporting date:
2024
2023
$m
$m
AMP statutory equity attributable to shareholders of AMP Limited
3,652
3,874
Other adjustments 1
(117)
(80)
AMP shareholder equity
3,535
3,794
Goodwill and other intangibles
(219)
(209)
Equity investments
(839)
(803)
Net deferred tax assets
(586)
(624)
Other regulatory adjustments 2
(122)
(184)
Group CET1 capital
1,769
1,974
Group CET1 capital requirements 3
1,630
1,674
Group CET1 surplus capital
139
300
1
Other adjustments relate to the net assets of AMP Foundation and surpluses recognised on defined benefit plans.
2 Other regulatory adjustments relate to deductions for securitisation, capitalised costs, cash flow hedge reserves for non-fair value items on
the balance sheet and other deductions.
3 A number of AMP’s operating entities are subject to APRA (AMP Bank Limited under the ADI Prudential Standards and N.M Superannuation
Proprietary Limited under the Operational Risk Financial Requirements) and ASIC requirements. In certain circumstances, regulators may
require AMP and its operating entities to hold a greater level of capital to support its business and/or restrict the amount of dividends that
can be paid by them.
3.5
Capital management
Notes to the financial statements
for the year ended 31 December 2024
116
4
Section
Employee disclosures
This section provides details on the various programs the AMP group uses to reward and recognise
employees, including key management personnel.
4.1
Defined benefit plans
4.2
Share-based payments
4.1
Defined benefit plans
AMP contributes to defined benefit plans which provide benefits to employees, and their dependants, on resignation,
retirement, disability or death of the employee. The benefits are based on years of service and an average salary calculation.
All defined benefit plans are closed to new members.
The characteristics and risks associated with each of the defined benefit plans are described below:
Plan details
Australia
New Zealand
Plan names
AMP Australia Plan I and AMP Australia Plan II.
AMP New Zealand Plan I and AMP
New Zealand Plan II.
Entitlements of active
members
A lump sum or pension on retirement.
Pensions provided are lifetime
indexed pensions with a reversionary
spouse pension.
A lump sum or pension on retirement. For
those who elect for a pension, the plan also
provides for a spouse pension.
Governance of the plans
The plans’ trustees – this includes
administration of the plan, management
and investment of the plan assets,
and compliance with superannuation
laws and other applicable regulations.
The plans’ trustees – this includes
administration of the plan, management
and investment of the plan assets, and
looking after the interests of all beneficiaries.
Valuations required
Every year.
Every three years.
Key risks
The risk of actual outcomes being different to the actuarial assumptions used to estimate the
defined benefit obligation, investment risk and legislative risk.
Date of last valuation
31 March 2024.
31 December 2023.
Additional recommended
contributions
No additional contributions are required
until the 31 March 2025 valuation
is completed.
Immaterial additional contributions from 1
January 2025 have been recommended.
(a) Defined benefit asset/(liability)
2024
2023
$m
$m
Present value of wholly-funded defined benefit obligations
(653)
(677)
Fair value of plan assets
712
676
Defined benefit asset/(liability) recognised in the Consolidated statement of financial position
59
(1)
Movement in defined benefit asset/(liability)
Defined benefit (liability)/asset recognised at the beginning of the year
(1)
12
Plus: Total expenses recognised in the Consolidated income statement
(1)
(2)
Plus: Foreign currency exchange rate changes
–
1
Plus: Actuarial gains/(losses) recognised in Other comprehensive income 1
61
(12)
Defined benefit asset/(liability) recognised at the end of the year
59
(1)
1
The cumulative net actuarial gains and losses recognised in the Other comprehensive income is a $247m gain (2023: $186m gain).
117
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(b) Reconciliation of the movement in the defined benefit asset/(liability)
Defined benefit obligation
Fair value of plan assets
2024
2023
2024
2023
$m
$m
$m
$m
Balance at the beginning of the year
(677)
(645)
676
657
Current service cost
(1)
(1)
–
–
Interest (expense)/income
(29)
(27)
29
26
Net actuarial gains/(losses)
7
(56)
54
44
Foreign currency exchange rate changes
2
1
(2)
–
Benefits paid
45
51
(45)
(51)
Balance at the end of the year
(653)
(677)
712
676
(c) Analysis of defined benefit surplus/(deficit) by plan
Fair value
of plan assets
Present value
of plan obligation
Net recognised
surplus/(deficit)
Actuarial gains/(losses)
2024
2023
2024
2023
2024
2023
2024
2023
$m
$m
$m
$m
$m
$m
$m
$m
AMP Australia Plan I
259
247
(251)
(260)
8
(13)
22
(5)
AMP Australia Plan II
369
344
(315)
(318)
54
26
28
(11)
AMP New Zealand Plan I
12
13
(12)
(15)
–
(2)
2
1
AMP New Zealand Plan II
72
72
(75)
(84)
(3)
(12)
9
3
Total
712
676
(653)
(677)
59
(1)
61
(12)
(d) Principal actuarial assumptions
The following table sets out the principal actuarial assumptions used as at the reporting date in measuring the defined benefit
obligations of the Australian and New Zealand defined benefit funds:
AMP Plan I
AMP Plan II
Australia
New Zealand
Australia
New Zealand
2024
2023
2024
2023
2024
2023
2024
2023
%
%
%
%
%
%
%
%
Weighted average discount
rate
5.2
5.1
4.6
4.5
5.3
5.3
4.6
4.5
Expected rate of salary
increases
n/a
n/a
n/a
n/a
2.8
2.8
3.0
3.0
4.1
Defined benefit plans continued
Notes to the financial statements
for the year ended 31 December 2024
118
(e) Allocation of assets
The asset allocations of the defined benefit funds are shown in the following table:
AMP Plan I
AMP Plan II
Australia
New Zealand
Australia
New Zealand
2024
2023
2024
2023
2024
2023
2024
2023
%
%
%
%
%
%
%
%
Equity
57
58
43
46
57
58
43
46
Fixed interest
22
20
41
40
22
20
41
40
Property
15
14
–
–
15
14
–
–
Cash
1
3
9
14
1
3
9
14
Other
5
5
7
–
5
5
7
–
(f) Sensitivity analysis
The defined benefit obligation has been recalculated for each scenario by changing only the specified assumption as outlined
below, whilst retaining all other assumptions as per the base case. The table below shows the increase/(decrease) for each
assumption change. Where an assumption is not material to the fund it has been marked as n/a.
AMP Plan I
AMP Plan II
2024
Australia
New Zealand
Australia
New Zealand
(+)
(-)
(+)
(-)
(+)
(-)
(+)
(-)
Assumption
$m
$m
$m
$m
$m
$m
$m
$m
Discount rate (+/- 0.5%) 1
(9)
9
n/a
1
(14)
16
n/a
7
Pensioner indexation
assumption (0.5%) 2
10
(9)
1
n/a
15
(14)
7
n/a
Pensioner mortality assumption
(10%)
n/a
8
n/a
n/a
n/a
7
n/a
n/a
Life expectancy (additional 1
year)
n/a
n/a
1
n/a
n/a
n/a
2
n/a
2023
Discount rate (+/- 0.5%) 1
(11)
13
n/a
1
(15)
17
n/a
8
Pensioner indexation
assumption (0.5%) 2
14
(11)
1
n/a
15
(14)
7
n/a
Pensioner mortality assumption
(10%)
n/a
10
n/a
n/a
n/a
7
n/a
n/a
Life expectancy (additional 1
year)
n/a
n/a
1
n/a
n/a
n/a
2
n/a
1
(+/- 1%) discount rate applied to AMP New Zealand Plan I and II.
2 1% indexation increase applied to AMP New Zealand Plan I and II.
(g) Expected contributions and maturity profile of the defined benefit obligation
AMP Plan I
AMP Plan II
Australia
New Zealand
Australia
New Zealand
Weighted average duration of the defined benefit
obligation (years)
8
7
10
10
4.1
Defined benefit plans continued
119
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Additional information
Accounting policy – recognition and measurement
Defined benefit plans
The AMP group recognises the net deficit or surplus position of each fund in the Consolidated statement of financial position.
The deficit or surplus is measured as the difference between the fair value of the funds’ assets and the discounted defined
benefit obligations of the funds, using discount rates determined with reference to market yields on high quality corporate
bonds at the end of the reporting period.
After taking into account any contributions paid into the defined benefit funds during the year, movements in the net surplus
or deficit of each fund, except actuarial gains and losses, are recognised in the Consolidated income statement. Actuarial
gains and losses arising from experience adjustments and changes in actuarial assumptions over the year and the returns
on plan assets are recognised (net of tax) directly in retained earnings through Other comprehensive income.
Contributions paid into defined benefit funds are recognised as reductions in the deficit.
Critical accounting estimates and judgments
Defined benefit obligations
The value of the group’s defined benefit obligations are outputs of actuarial models dependent on
a number of underlying assumptions. Management applies judgment in selecting the assumptions used.
Key assumptions include:
—
discount rate;
—
expected future salary increases;
—
pension indexation;
—
mortality; and
—
life expectancy.
4.1
Defined benefit plans continued
Notes to the financial statements
for the year ended 31 December 2024
120
4.2
Share-based payments
AMP has multiple employee share-based payment plans. Share-based payment plans help create alignment between employees
participating in those plans (participants) and shareholders. Information on plans which AMP currently offers is provided below.
The following table shows the expense recorded for AMP share-based payment plans during the year:
2024
2023
$'000
$'000
Plans currently offered
Performance rights - equity settled 1
3,143
4,696
Share rights and restricted shares - equity settled 2
4,114
4,023
Performance rights – cash settled
79
–
Total share-based payments expense
7,336
8,719
1
Non-market performance rights which were forfeited or where performance conditions were not met were reversed during the year.
2 Includes deferred share rights issued under Short-Term Incentive (STI) awards.
Accounting policy – recognition and measurement
Equity-settled share-based payments
The cost of equity-settled share-based payments is measured using their fair value at the date on which they are granted. The fair
value calculation takes into consideration several factors, including the likelihood of achieving market-based vesting conditions
such as total shareholder return (market conditions).
The cost of equity-settled share-based payments is recognised in the Consolidated income statement, together with a
corresponding increase in the share-based payment reserve (SBP reserve) in equity, over the vesting period of the instrument. At
each reporting date, AMP reviews its estimates of the number of instruments that are expected to vest and any changes to the
cost are recognised in the Consolidated income statement and the SBP reserve, over the remaining vesting period.
Where the terms of an equity-settled share-based payment are modified and the expense increases because of the modification,
the increase is recognised over the remaining vesting period. When a modification reduces the expense, there is no adjustment,
and the pre-modification cost continues to be recognised.
Where an equity-settled award does not ultimately vest, the expenses get reversed, except for awards where vesting is conditional
upon a market condition and that condition is not satisfied in which case the relevant expenses are retained in line with the
accounting requirements.
Cash-settled share-based payments
Cash-settled share-based payments are recognised where AMP has an obligation to settle a share-based arrangement in
cash or intends to settle in cash.
Cash-settled share-based payments are recognised over the vesting period of the award in the Consolidated income
statement, together with a corresponding liability. The fair value is measured on initial recognition and re-measured at each
reporting date up to and including the settlement date, with any changes in fair value recognised in the Consolidated income
statement. Similar to equity-settled awards, the number of instruments expected to vest are reviewed at each reporting date
and any changes are recognised in the Consolidated income statement and as a corresponding movement in liability. The fair
value is determined using appropriate valuation techniques.
(a) Performance rights – equity settled
The Chief Executive Officer (CEO) and Executive Committee members receive their long-term incentive (LTI) award in the form
of performance rights. This is intended to ensure the interests of those executives who can most directly influence company
performance, are appropriately aligned with the interests of shareholders.
121
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Additional information
(a) Performance rights – equity settled continued
Plan
Long-term Incentive (LTI) Awards
CEO Sign-on Performance Rights Award
Overview
Performance rights give the participant
the right to acquire one fully paid ordinary
share in AMP Limited upon meeting specific
performance hurdles. They are granted at no
cost to the participant and carry no dividend
or voting rights until they vest. Upon vesting,
the performance rights convert to restricted
shares, which are subject to further restriction
periods. This award may be settled through
an equivalent cash payment, at the discretion
of the board.
As part of the CEO’s incentive package,
performance rights were awarded on
appointment. The performance rights give the
CEO the right to acquire one fully paid ordinary
share in AMP Limited (per right) upon meeting
specific performance conditions, including
hurdles that are subject to an absolute and
relative Total Shareholder Return (TSR) measure.
The award was granted at no cost to the CEO
and carried no dividend or voting rights. At the
discretion of the board, the award provided the
option of settlement through an equivalent cash
payment.
Years granted
2022, 2023 and 2024
2021
Vesting conditions/
period
The vesting of performance rights under the
2022 LTI awards is subject to:
—
Relative TSR: which measures the
Compound Annual Growth Rate (CAGR)
or CAGR in the Company’s TSR relative
to CAGR in TSR to the peer group of ASX100
financial companies (excluding A-REITs)
over a three-year Performance Period.
Any performance rights that vest is subject to a
further one-year restriction period.
The vesting of performance rights under the
2023 and 2024 LTI awards is subject to:
—
Relative TSR (35% of award): measures
AMP’s CAGR TSR relative to a peer
group of ASX 200 financial companies
(excluding A-REITs) over a three-year
Performance Period.
—
Adjusted Earnings Per Share (EPS) (35%
of award): measures AMP’s CAGR in
AMP’s adjusted EPS over a three-year
Performance Period.
—
Reputation (30% of award): measures
AMP’s RepTrak score performance relative
to a comparator group which is based
on a subset of 15 organisations positioned
similarly to AMP in RepTrak’s Benchmark
60 index, over a three-year Performance
Period.
Any performance rights that vest is subject
to further restriction periods of up to three
years in the case of the CEO and up to an
additional two years for Executive Committee
members.
The vesting of the CEO’s sign-on performance
rights was subject to the following performance
hurdles and gateways:
1. Absolute TSR – measures the CAGR
in the Company’s TSR over the relevant
Performance Period.
2. Relative TSR – measures the Company’s TSR
performance relative to a peer group over the
relevant Performance Period. The comparator
group for the relative TSR performance hurdle
will be an adjusted ASX100 Financials index.
Each component was awarded in three
tranches. The first tranche of each component
vested in 2021, and the second tranche of
each component lapsed during 2023 due
to not meeting the minimum threshold for
performance.
The final tranche of each component was tested
on 22 November 2024, with one component fully
vesting, and one component lapsing for not
meeting the minimum performance threshold.
For the performance hurdles that were met, the
rights will vest and become exercisable on or
around the opening of the first available AMP
trading window following the vesting date.
Risk and Conduct
Gateway
All equity plans are subject to a Risk and Conduct Gateway – if a participant’s performance and
conduct is not in line with AMP’s expectations, the board has discretion to amend the number
of rights granted and/or the vesting outcome in line with the board’s adjustment guidelines.
4.2
Share-based payments continued
Notes to the financial statements
for the year ended 31 December 2024
122
Plan
Long-term Incentive (LTI) Awards
CEO Sign-on Performance Rights Award
Unvested awards
If a participant is terminated for cause or gives notice of resignation before the vesting date,
all unvested rights will lapse or be forfeited, unless the board determines otherwise.
If a participant’s employment ends for any other reason, the unvested awards will remain on foot.
For the CEO sign-on performance rights and the 2022, 2023 and 2024 LTI awards, a pro rata
portion of rights are retained. All unreleased restricted shares allocated to a participant on vesting
will remain on foot until the end of the restriction period, unless the participant is terminated for
cause, in which case the awards are forfeited.
Valuation of Performance rights – equity settled
The values for performance rights are based on valuations prepared by an independent external consultant. The valuations
are based on the 10-day volume weighted average share price over the 10-day trading period prior to the start of the award’s
valuation period. Assumptions regarding the dividend yield and volatility have been estimated based on AMP’s dividend yield
and volatility over an appropriate period.
In determining the share-based payments expense, the number of instruments expected to vest has been adjusted to reflect
the number of employees expected to remain with AMP until the end of the performance period; this is revisited each reporting
date. The following table shows the factors and range considered in determining the value of the performance rights granted
during the last two years.
Performance rights – equity settled
2024
2023
Closing share price on grant date
$1.17
$1.05
Contractual life (in years)
3.8–5.8
3.8–5.8
Dividend yield (per annum)
4.20%
4%–5%
Expected volatility of share price
0%–35%
0%–40%
Risk-free interest rate (per annum)
0%–3.6%
0%–2.9%
Performance rights hurdle discount
11%–38%
12%–58%
Fair value of performance rights (weighted average)
$0.93
$0.75
Expected time to vesting (in years)
3.7
3.7
Performance rights – equity settled movements
Number of performance rights - equity settled
2024
2023
Balance at the beginning of the year
12,934,743
32,410,318
Granted during the year
8,087,316
5,345,802
Exercised during the year
(224,548)
–
Lapsed during the year
(3,140,851)
(24,821,377)
Balance at the end of the year
17,656,660
12,934,743
4.2
Share-based payments continued
(a) Performance rights – equity settled continued
123
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(b) Share rights and restricted shares – equity settled
The Chief Executive Officer (CEO), Executive Committee members, and certain executives and employees are provided share
rights as a part of their remuneration arrangements. These arrangements are summarised as follows:
Share rights
Long-term Variable
Remuneration Awards
Short-term
Incentive Awards
Salary
Sacrifice Plan
CEO Sign-on
Share Rights Award
Overview
Share rights give the participant the right to acquire one fully paid ordinary share
in AMP Limited after a specified service period. They are granted at no cost
to the participant and carry no dividend or voting rights until they vest. All awards
are subject to ongoing employment, compliance with AMP policies and the
board’s discretion.
In 2021, AMP offered the opportunity to salary sacrifice between $1,000–$5,000
over a 12-month period to acquire shares in AMP which included a matching
contribution on a 2:5 basis.
The sign-on share
rights give the
CEO the right to
acquire one fully
paid ordinary share
in AMP Limited
(per right) after
a specified service
period. They were
granted at no cost
to the CEO and
carry no dividend
or voting rights
until they vest. This
award may be
settled through an
equivalent cash
payment at the
discretion of the
board.
Vesting
conditions/
period
Long-term Variable Remuneration
(LTVR) awards for certain
executives (pre 2023) are subject
to continued service periods
of three or four years.
LTVR awards for certain executives
granted from 2023 onwards, are
subject to continued service periods
that vest in three equal tranches
over a three year period, or a single
tranche after four years.
Awards granted under the Deferred
Bonus Equity Plan are split into
two tranches with continued
service conditions of two and three
years respectively.
These awards may be settled
through an equivalent cash
payment, at the discretion
of the board.
Short-term Incentive
(STI) awards typically
have 40% of the
award deferred in
equity. The vesting
period is between
two to four years
of continued service.
These awards may
be settled through
an equivalent
cash payment,
at the discretion
of the board.
Shares granted
under the
share matching
component of the
salary sacrifice
plan are subject
to continued service
for two years from
grant date.
The first and
second tranches,
representing 96%
of the award, were
vested and released
to the CEO. The
remaining 4% of the
award vested on
22 November 2024.
Unvested
awards
Unvested awards are forfeited if the participant voluntarily ceases employment or is dismissed
for misconduct.
4.2
Share-based payments continued
Notes to the financial statements
for the year ended 31 December 2024
124
Valuation of share rights
The fair value of share rights has been calculated as at the grant date by external consultants using a discounted cash flow
methodology. If relevant to the award, fair value has been discounted for the present value of dividends expected to be paid
during the vesting period to which the participant is not entitled. For the purposes of the valuation, it is assumed share rights
are exercised as soon as they have vested. Assumptions regarding the dividend yield have been estimated based on AMP’s
dividend yield over an appropriate period.
In determining the share-based payments expense, the number of instruments expected to vest has been adjusted to reflect
the number of employees expected to remain with AMP until the end of the vesting period. The following table shows the
factors and range considered in determining the independent fair value of the share rights granted during the last two years:
Share rights and restricted shares – equity settled
2024
2023
Closing share price on grant date
$1.17
$1.05
Contractual life (in years)
0.8–4.8
0.8–3.8
Dividend yield (per annum)
4.20%
4%–5%
Dividend discount
3%–18%
3%–16%
Fair value of share rights (weighted average)
$1.05
$0.94
Expected time to vesting (in years)
0.1–4.1
0.0–3.1
Share rights and restricted shares – equity settled movements
Number of share rights and restricted shares - equity settled
2024
2023 1
Balance at the beginning of the year
20,045,019
17,726,479
Granted during the year
6,867,939
6,988,269
Exercised during the year
(6,177,437)
(3,570,506)
Lapsed during the year
(2,888,853)
(1,099,223)
Balance at the end of the year
17,846,668
20,045,019
4.2
Share-based payments continued
(b) Share rights and restricted shares – equity settled continued
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5
Section
Group entities
This section explains significant aspects of the AMP group structure, including significant investments
in controlled operating entities, and investments in associates. It also provides information on business
acquisitions and disposals made during the year.
5.1
Controlled entities
5.2
Discontinued operations
5.3
Investments in associates
5.4
Parent entity information
5.5
Related party disclosures
5.1
Controlled entities
Significant investments in controlled operating entities are as follows:
Operating entities
Country of
% holdings
Name of entity
registration
Share type
2024
2023
AdviceFirst Limited
New Zealand
Ord
100
100
AMP Bank Limited
Australia
Ord
100
100
AMP Group Finance Services Limited
Australia
Ord
100
100
AMP Services (NZ) Limited
New Zealand
Ord
100
100
AMP Services Limited
Australia
Ord
100
100
AMP Wealth Management New Zealand Limited
New Zealand
Ord
100
100
AWM Services Pty Ltd
Australia
Ord
100
100
ipac Asset Management Limited
Australia
Ord
100
100
N.M. Superannuation Pty Ltd
Australia
Ord
100
100
National Mutual Funds Management Ltd
Australia
Ord
100
100
NMMT Limited
Australia
Ord
100
100
AMP Financial Planning Pty Limited 1
Australia
Ord
–
100
Charter Financial Planning Limited 1
Australia
Ord
–
100
Hillross Financial Services Limited 1
Australia
Ord
–
100
1
Control was lost as a result of the sale of the Advice business during 2H 2024. Refer to 'About this report' section and note 5.2 for more details.
Notes to the financial statements
for the year ended 31 December 2024
126
5.2
Discontinued operations
(a) Partnership for Advice business
On 2 December 2024, AMP announced the completion of the Partnership for Advice business creating a partnership and
ownership structure with Entireti Limited (Entireti) and AZ Next Generation Advisory Limited (AZ NGA) for the AMP Advice
business, which had previously been announced on 8 August 2024. Entireti acquired AMP’s financial advice licensees: Charter
Financial Planning Limited, Hillross Financial Services Limited, AMP Financial Planning Pty Limited, as well as its self-licensed offer
Jigsaw Support Services Pty Limited for $10.2m. AMP retains a minority interest of 30% in a new entity (Mutual Advice Partners
Pty Ltd, a subsidiary of Entireti) holding these four businesses. AZ NGA acquired AMP's equity holdings in 16 financial advice
practices for $82.5m. The results of the Advice business has been classified as discontinued operations in the Consolidated
income statement. AASB 5 Non‑current Assets Held for Sale and Discontinued Operations (AASB 5) requires the income,
expenses and cash flows of Advice business to be separately disclosed as discontinued operations.
In accordance with AASB 5, the comparative period results have been re-presented. As result, in addition to the Advice
business, whose results were included for the entire comparative period, the discontinued operations for year ended 31
December 2023 also included the income, expenses and cashflows of:
—
AMP Capital’s international infrastructure equity business from 1 January to 3 February 2023;
—
AMP Capital’s real estate and domestic infrastructure equity business from 1 January to 24 March 2023; and
—
SuperConcepts Self-Managed Superannuation Fund administration and software business from 1 January to 30 June 2023.
(b) (Loss)/profit for the year from discontinued operations
The results of the Advice businesses included within AMP group’s Consolidated income statement are set out below, including
comparative information which also includes the results of AMP Capital and SMSF sold businesses for 2023.
Certain service arrangements will continue between AMP and some of the sold businesses. Where relevant, revenue and
expenses attributable to continuing operations from such arrangements have been presented within continuing operations
to reflect the ongoing nature of such arrangements. The result of the discontinued operations presented below have been
adjusted for these arrangements.
2024
2023 1
$m
$m
Total revenue of discontinued operations
560
725
Total expense of discontinued operations
(551)
(875)
Profit/(loss) before tax from discontinued operations
9
(150)
Income tax (expense)/benefit
(3)
43
Profit/(loss) for the year from discontinued operations before disposals
6
(107)
(Loss)/gain on disposal of businesses sold
(46)
232
Income tax benefit relating to the disposal of businesses sold
10
15
(Loss)/gain on disposal of businesses sold after tax
(36)
247
(Loss)/profit for the year from discontinued operations 2
(30)
140
Other comprehensive loss for the year from discontinued operations
–
(7)
Total comprehensive (loss)/income for the year
(30)
133
1
Results for the year ended 31 December 2023 have been re-presented to include the results of the Advice business as discontinued operations.
2 Includes $106m loss from Advice business for the year ended 31 December 2023.
(c) Cash flows provided by discontinued operations
The cash flows (used in)/provided by discontinued operations during the year and included within the Consolidated statement
of cash flows, are set out below, including comparative information.
2024
2023 1
$m
$m
Net cash used in operating activities
(119)
(136)
Net cash (used in)/provided by investing activities
(1)
358
Net cash (used in)/provided by discontinued operations
(120)
222
1
Results for the year ended 31 December 2023 have been re-presented to include the results of the Advice business as discontinued operations.
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Critical accounting estimates and judgments:
The presentation of discontinued operations includes gains or losses recognised on the partnership for Advice
business for the year ended 31 December 2024 and the sale of AMP Capital and SuperConcepts Self-Managed
Superannuation Fund administration and software (SMSF) businesses for the year ended 31 December
2023. It incorporates management’s judgments in relation to assumptions used to estimate purchase price
adjustments, earn-outs, impairment considerations, provisions for directly attributable separation costs yet to
be incurred, warranties and indemnities under sale agreements and potential onerous contracts resulting from
the separation.
5.3
Investments in associates
Investments in associates accounted for using the equity method:
Place of business
Ownership interest
Carrying amount 1
2024
2023
2024
2023
Associate
Principal activity
%
%
$m
$m
China Life Pension Company
(CLPC) 2 3
Pension Company
China
19.99
19.99
525
461
China Life AMP Asset Management
Company Ltd (CLAMP) 3
Investment Management China
14.97
14.97
106
88
PCCP, LLC
Investment Management United States
22.95
23.27
205
180
Other4
Financial Advisory
Australia
30.00
n/a
3
74
Total investments in associates
839
803
1
The carrying amount is after recognising $84m (2023: $72m) share of current year profit from associates accounted for using the equity method.
2 AMP’s 31 December 2023 financial report was qualified with respect to the external auditor’s ability to obtain sufficient, appropriate, third-
party audit evidence about AMP’s share of the net income and consequently the carrying amount of its investment in CLPC for the year ended
31 December 2023. On 22 March 2024, subsequent to the issuance of AMP’s 31 December 2023 financial report, CLPC’s audited financial
statements were issued which evidenced AMP’s share of CLPC’s net income for the year ended 31 December 2023 and consequently the carrying
amount of AMP’s investment in CLPC at that date was supported.
3 AMP has significant influence through representation on the entity's board.
4 The 2024 carrying amount represents AMP's interest in Mutual Advice Partners Pty Ltd, a subsidiary of Entireti Limited (Entireti) which acquired
AMP's Advice business in 2H 2024. The comparative balances include investments by Advice business that were sold in 2H 2024.
5.2
Discontinued operations continued
Notes to the financial statements
for the year ended 31 December 2024
128
Accounting Policy – recognition and measurement
Investments in associates
Investments in entities over which the AMP group has the ability to exercise significant influence, but not control, are accounted
for using the equity method. The investment is measured at cost plus post-acquisition changes in the AMP group’s share of the
associates’ net assets, less any impairment in value. The AMP group’s share of profit or loss of associates is included in the
Consolidated income statement. Any dividend or distribution received from associates is accounted for as a reduction in the
carrying value of the associate.
Any impairment is recognised in the Consolidated income statement when there is objective evidence that a loss has been
incurred. It is measured as the amount by which the carrying amount of the investment in entities exceeds the recoverable amount.
5.4
Parent entity information
(a) Statement of comprehensive income – AMP Limited stand-alone entity
2024
2023
$m
$m
Dividends and distributions from controlled entities and net gains or losses on financial assets 1
58
704
Interest revenue
6
1
Service fee revenue
7
6
Share of profit from associates accounted for using the equity method
53
38
Other income 2
99
–
Operating expenses
(10)
(80)
Impairment of investments in controlled entities 3
(421)
–
Finance costs
(51)
(27)
Income tax benefit
25
134
(Loss)/profit for the year
(234)
776
Total comprehensive (loss)/income for the year
(234)
776
1
Dividends and distributions from controlled entities of $55m (2023: $694m) is not assessable for tax purposes.
2 This relates to benefits arising from certain entities exiting the tax consolidated group during the year.
3 Represents impairment of investments in subsidiaries by the Parent entity which does not impact the results of the group as the impairment is
eliminated upon consolidation under accounting requirements.
5.3
Investments in associates continued
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(b) Statement of financial position – AMP Limited stand-alone entity
2024
2023
$m
$m
Current assets
Cash and cash equivalents
27
7
Receivables 1
137
211
Current tax assets
–
78
Loans and advances to subsidiaries
1,042
250
Investments in other financial assets
–
11
Non-current assets
Investments in controlled entities
3,438
4,302
Investments in associates
535
471
Loans and advances to subsidiaries
–
500
Deferred tax assets 2
398
353
Total assets
5,577
6,183
Current liabilities
Payables 1
374
496
Current tax liabilities
5
23
Provisions
1
112
AMP Capital Notes 2 3
1
1
AUD Medium Term Notes 3
5
–
Non-current liabilities
AMP Capital Notes 2 3
275
273
AUD Medium Term Notes 3
474
273
Total liabilities
1,135
1,178
Net assets
4,442
5,005
Equity
Contributed equity
4,426
4,670
Share-based payment reserve
32
31
Profits reserve 4
599
22
Other reserve
23
3
Accumulated (losses)/retained profit
(638)
279
Total equity
4,442
5,005
1
Receivables and payables include tax-related amounts receivable from subsidiaries of $86m (2023: $118m) and payable to subsidiaries of $358m
(2023: $437m).
2 Deferred tax assets include amounts recognised for losses available for offset against future taxable income of $397m (2023: $352m).
3 The AMP Limited entity is the issuer of AMP Capital Notes 2 and AUD Medium Term Notes. Further information is provided in note 3.2.
4 Refer to the Consolidated statement of changes in equity for further information.
(c) Contingent liabilities of the AMP Limited stand-alone entity
The AMP Limited entity has entered into deeds to provide capital maintenance and liquidity support to AMP Bank Limited.
At the reporting date, the likelihood of any outflow in settlement of these obligations is considered remote.
5.4
Parent entity information continued
Notes to the financial statements
for the year ended 31 December 2024
130
5.5
Related party disclosures
(a) Key management personnel
Compensation of key management personnel
2024
2023
$'000
$'000
Short-term benefits
7,763
7,857
Post-employment benefits
313
302
Share-based payments
2,861
3,046
Other long-term benefits
81
(36)
Termination benefits
–
433
Total
11,018
11,602
Compensation of the group’s key management personnel includes salaries, non-cash benefits and contributions to the
post‑employment benefits. Executive key management personnel also participate in share-based incentive programs (refer to
note 4.2). The amounts disclosed in the table are recognised as an expense during the reporting period.
Loans to key management personnel
Loans to key management personnel and their related parties are provided by AMP Bank and are on similar terms and conditions
generally available to other employees within the group. No guarantees are given or received in relation to these loans. Loans
have been made to five current key management personnel and their related parties. Details of these loans are:
2024
2023
$'000
$'000
Balance at the beginning of the year
2,117
4,165
Net advances
4,894
774
Balance at the end of the year
7,011
4,939
Interest charged
349
199
Interest not charged
2
2
Key management personnel access to AMP’s products
From time to time, key management personnel or their related entities may have had access to certain AMP products and
services such as investment products, personal banking and financial investment services. These products and services are
offered to key management personnel on the same terms and conditions as those entered into by other group employees
or customers.
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(b) Transactions with related parties
Transactions with non-executive directors
Some non-executive directors of AMP group hold directorships or positions in other companies or organisations. AMP may
provide or receive services from these companies or organisations negotiated based on arm’s length terms. None of the
non-executive directors were, or are, involved in any procurement or board decision making regarding the companies
or organisations with which they have an association.
Transactions with other associates
The key transactions with other associates include receipt of dividends and provision of certain services.
Transactions with investment entities
The AMP group, from time to time, invests sponsor capital. The structure of the fund or the group’s level of ownership may result
in the fund being treated as an associate of the group. See note 5.3 for details of the group’s associates. Management fees are
earned by AMP or its associates for managing and administering these investment funds.
All transactions between the group, its associates and the funds are on an arm’s length basis.
Accounting policy – recognition and measurement
Short-term benefits – Liabilities arising in respect of salaries and wages and any other employee entitlements expected
to be settled within 12 months of the reporting date are measured at their nominal amounts.
Post-employment benefits – Defined contribution funds – The contributions paid and payable by the AMP group to defined
contributions funds are recognised in the Consolidated income statement as an operating expense when they fall due. Prepaid
contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
Share-based payments – Refer to note 4.2.
Other long-term benefits – Other employee entitlements are measured at the present value of the estimated future cash
outflows to be made in respect of services provided by employees up to the reporting date. In determining the present value
of future cash outflows, discount rates are determined with reference to market yields at the end of the reporting period
on high quality corporate bonds.
5.5
Related party disclosures continued
Notes to the financial statements
for the year ended 31 December 2024
132
6
Section
Other disclosures
This section includes disclosures other than those covered in the previous sections required
for the AMP group to comply with the accounting standards and pronouncements.
6.1
Notes to the Consolidated statement of cash flows
6.2
Commitments
6.3
Right of use assets and lease liabilities
6.4
Provisions and contingent liabilities
6.5
Auditor’s remuneration
6.6
New accounting standards and other developments
6.7
Events occurring after reporting date
6.1
Notes to the Consolidated statement of cash flows
Reconciliation of cash flow from operating activities
2024
2023
$m
$m
Net profit after income tax
150
265
Depreciation of operating assets
35
39
Amortisation and impairment of intangibles
38
33
Investment losses and share of profit from investments in associates
(146)
(193)
Dividend and distribution income received
31
31
Share-based payment expense
7
9
Decrease/(increase) in receivables, loans and advances and other assets
1,096
(507)
Decrease in guarantee liabilities
(7)
(32)
Increase/(decrease) in income tax balances
67
(41)
(Decrease)/increase in deposits, other payables and provisions
(1,055)
291
Cash flows provided by/(used in) operating activities
216
(105)
Accounting policy – recognition and measurement
Cash and cash equivalents
Cash and cash equivalents comprise cash-on-hand that is available on demand and deposits that are held at call with
financial institutions. Cash and cash equivalents are measured at fair value, being the principal amount. For the purpose
of the Consolidated statement of cash flows, cash and cash equivalents also include other highly liquid investments not subject
to significant risk of change in value, with short periods to maturity, net of outstanding bank overdrafts. Bank overdrafts are
shown within interest-bearing liabilities in the Consolidated statement of financial position.
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6.2
Commitments
(a) Investment commitments
At 31 December 2024, AMP group had uncalled investment commitments of $12m (2023: $18m) in relation to certain sponsor
investments. Subsequent to the reporting date, $nil of this committed capital was invested by AMP group into managed
funds. These investment commitments will only be called when suitable investment opportunities arise, and the exact timeline
remains unspecified.
(b) AMP Bank credit-related loan commitments
At 31 December 2024, AMP Bank had credit-related commitments of $4,025m (2023: $3,576m), which included undrawn balances
on customer approved limits as well as loan offers pending signing by customers and signed loan contracts pending settlement.
AMP Bank expects that not all of the credit-related commitments will be drawn before their contractual expiry.
6.3
Right of use assets and lease liabilities
Per AASB 16 Leases (AASB 16), the group recognises lease liabilities except for short-term leases and leases where the underlying
asset is of low value, with corresponding right of use assets in the Consolidated statement of financial position.
(a) Right of use (ROU) assets
The main type of ROU asset recognised by the group is premises. The following table details the carrying amount of the ROU
assets at 31 December 2024 and the movements during the year.
2024
2023
$m
$m
Balance at the beginning of the year
329
396
Additions
5
10
Transfers to sublease receivables
(63)
(11)
Impairment expense
–
(27)
Depreciation expense
(32)
(39)
Balance at the end of the year
239
329
(b) Lease liabilities
The following table details the carrying amount of lease liabilities at 31 December 2024 and the movements during the year.
2024
2023
$m
$m
Balance at the beginning of the year
536
569
Additions
–
2
Interest expense
29
31
Payments made
(67)
(66)
Balance at the end of the year
498
536
The AMP group paid $2m (2023: $3m) in relation to short-term leases. The total cash outflow for leases in 2024 was $69m
(2023: $69m).
Notes to the financial statements
for the year ended 31 December 2024
134
Accounting policy – recognition and measurement
At inception, the AMP group assesses whether a contract is, or contains, a lease. Such assessment involves the application
of judgement as to whether:
—
the contract involves the use of an identified asset;
—
the group obtains substantially all the economic benefits from the asset; and
—
the group has the right to direct the use of the asset.
It is AMP’s policy to separate non-lease components when recognising the lease liability.
The group recognises a Right of Use (ROU) asset and a lease liability at the lease commencement date. The ROU asset is initially
measured as the present value of future lease payments, plus initial direct costs and restoration costs of the underlying asset,
less any lease incentives received. The ROU asset is depreciated over the shorter of the lease term and the useful life of the
underlying asset. The ROU asset is tested for impairment, including any reversal, if there is an indicator, and is adjusted for
certain remeasurements of the lease liability.
A lease liability is initially measured at the present value of future lease payments discounted using the group’s incremental
borrowing rate. Lease payments generally include fixed payments and variable payments that depend on an index, eg CPI.
A lease liability is remeasured when there is a change in future lease payments from a change in an index, or if the group’s
assessment of whether an option will be exercised changes.
Interest expense on lease liabilities is recognised within finance costs in the Consolidated income statement.
The group has elected not to recognise ROU assets and lease liabilities for leases where the lease term is less than or equal
to 12 months and where the underlying asset is of low value. Payments for such leases are recognised as an expense
on a straight‑line basis over the lease term.
Critical accounting estimates and judgments
Management applies judgment in identifying and measuring lease liabilities and assessing impairment indicators
for ROU assets which includes:
—
assessing whether a contract contains a lease;
—
determining lease term and incremental borrowing rate;
—
separating lease and non-lease components;
—
assessing lease modification vis-a-vis new lease; and
—
assessing the usage of ROU assets and the associated benefits.
6.3
Right of use assets and lease liabilities continued
135
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2024
2023
$m
$m
(a) Provisions
Compliance, litigation and corporate reorganisation
86
339
Other1
147
169
Total provisions
233
508
1
Other provisions include provisions for onerous lease arrangements, make-good provisions relating to premises and other operational provisions.
Compliance,
litigation and
corporate
reorganisation 1
Other
Total
2024
$m
$m
$m
(b) Movements in provisions
Balance at the beginning of the year
339
169
508
Net provisions raised during the year
31
67
98
Provisions utilised during the year
(284)
(89)
(373)
Balance at the end of the year
86
147
233
1
Provisions utilised during the year include $110m and $99m in relation to the shareholder class action and financial adviser class action
settlements respectively.
Accounting policy – recognition and measurement
Provisions
Provisions are recognised when:
—
AMP has a present obligation (legal or constructive) as a result of a past event;
—
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
—
a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the reporting date. For provisions other than employee entitlements, the discount rate used to determine the
present value reflects current market assessments of the time value of money and the risks specific to the liability.
A contingent liability is disclosed where a legal or constructive obligation is possible, but not probable; or where the obligation
is probable, but the financial impact of the event is unable to be reliably estimated.
From time to time the AMP group may incur obligations or suffer financial loss arising from litigation or contracts entered into in the
normal course of business, including guarantees issued for performance obligations of controlled entities in the AMP group.
Legal proceedings threatened against AMP may also, if filed, result in AMP incurring obligations or suffering financial loss.
Where it is determined that the disclosure of information in relation to a contingent liability can be expected to adversely
prejudice the position of the AMP group (or its insurers) in a dispute, accounting standards allow AMP to not disclose such
information. It is AMP’s policy that such information is not disclosed in this note.
Industry and regulatory compliance investigations
AMP is subject to review from time to time by regulators, both in Australia and offshore. In Australia, AMP’s principal regulators are
APRA, ASIC, AUSTRAC and the ATO, although other government agencies may have jurisdiction depending on the circumstances.
The reviews and investigations conducted by regulators may be industry-wide or specific to AMP and the outcomes of those reviews
and investigations can vary and may lead, for example, to the imposition of penalties, disagreement with management’s position
on judgmental matters including provisions and tax positions, variations or restrictions to licences, the compensation of clients,
enforceable undertakings or recommendations and directions for AMP to enhance its control framework, governance and systems.
AMP regularly undertakes internal reviews, as part of ongoing monitoring and supervision activities, to determine, amongst
other things, where clients or other stakeholders, including employees, may have been disadvantaged. In some instances,
compensation has been paid and where the results of our reviews have reached the point that compensation is likely and can
be reliably estimated then a provision has been raised. These provisions are judgemental and the actual compensation could
vary from the amounts provided.
6.4
Provisions and contingent liabilities
Notes to the financial statements
for the year ended 31 December 2024
136
Litigation and claims
Superannuation class action
During May and June 2019, certain subsidiaries of AMP Limited, namely, N.M. Superannuation Proprietary Limited (NM Super),
AMP Superannuation Pty Limited (AMP Super), NMMT Limited and AMP Services Limited (AMP Services), were served with two
class actions in the Federal Court of Australia (the Federal Court). The first of those class actions related to the fees charged
to members of certain of AMP superannuation funds. The second of those actions related to the fees charged to members,
and interest rates received and fees charged on cash-only fund options. The two proceedings were brought on behalf of
certain superannuation clients and their beneficiaries. Subsequently, the Federal Court ordered that the two proceedings be
consolidated into one class action. The consolidated class action is in respect of the period July 2008 to May 2020. The AMP
respondents have filed defences to the proceedings. The claim against NMMT Limited has since been discontinued. The claims
are yet to be quantified and participation has not been determined. At present, the proceedings are listed for a trial of eight
weeks commencing on 26 May 2025. Currently, the potential outcome and costs associated with the matter remain uncertain.
The proceedings are being defended.
Commissions for advice and insurance advice class action
In July 2020, AMP Financial Planning Pty Limited (AMPFP) and Hillross Financial Services Limited (Hillross), both subsidiaries
of AMP Limited at that time, were served with a class action in the Federal Court. The class action related to advice provided
by some aligned financial advisers in respect of certain life and other insurance products. Subsequently, in August 2020, AMP
Limited, AMPFP, Hillross and Charter Financial Planning Limited (Charter, which was a subsidiary of AMP Limited at that time),
were served with a class action in the Federal Court. The class action primarily related to the payment of commissions to some
aligned financial advisers in respect of certain life insurance and other products and in respect of allegations of charging of
fees where advice services were not provided. In December 2020, the Federal Court ordered that these two class actions be
consolidated. The consolidated class action is in respect of the period July 2014 to February 2021. The respondents have filed
a defence to the proceedings. The claim is yet to be quantified and participation has not been determined. At present, the
proceedings are listed for a trial of four weeks in 1H 26. Currently, the potential outcome and costs associated with the matter
remain uncertain. The proceedings are being defended.
Proceedings brought by Munich Re Australia
In April 2023, AMP Limited and certain subsidiaries, namely, AMP Services, NM Super, AMP Super and AWM Services Pty
Limited, were served with proceedings in the Supreme Court of New South Wales brought by Munich Reinsurance Company of
Australasia Limited (Munich Re). The proceedings primarily relate to allegations of misleading or deceptive conduct in respect
of the entry by Munich Re and Resolution Life Australasia Limited (RLA) (formerly AMP Life Limited, which is also a defendant
to the proceedings) into certain reinsurance arrangements in 2016 and 2017. The AMP respondents have filed a defence in the
primary proceedings. RLA has similarly filed a defence in the primary proceedings and a cross-claim against AMP Services (in
respect of an indemnity said to be given by AMP Services to RLA) and subsequently amended that cross-claim (in respect of
claims against NM Super relating to purported termination of certain policies held with RLA). AMP Services has filed a defence
to the initial cross-claim. The claim is yet to be quantified. Currently, the potential outcome and costs associated with the matter
remain uncertain. The proceedings are being defended.
Indemnities and warranties
Under the terms of sale agreements of various entities transacted by AMP from time to time, AMP has given certain covenants,
warranties and indemnities in favour of counterparties to those sales. From time to time, AMP may be notified of potential
breaches of these covenants, warranties and indemnities. A breach of these covenants or warranties, or the triggering of an
indemnity, may result in AMP being potentially liable for some future payments to those entities. Management reviews these
notified potential breaches on an ongoing basis, and provision amounts, where applicable, are adjusted at each reporting
period to reflect management’s best estimate. In addition, there remain other indemnities and warranties for which no provision
has been recognised as at the reporting date and a contingent liability exists should such indemnities and warranties be called
upon or where actual outcomes differ from management’s expectations.
Critical accounting estimates and judgments
The group recognises a provision where a legal or constructive obligation exists at the balance sheet date and
a reliable estimate can be made of the likely outcome. Provisions are reviewed on a regular basis and adjusted
for management’s best estimates, however significant judgement is required to estimate likely outcomes and
future cash flows. The judgemental nature of these items means that future amounts settled may be different
from those provided for.
6.4
Provisions and contingent liabilities continued
137
AMP 2024 Annual report
Overview
Directors’ report
Business review
Financial report
Additional information
6.5
Auditor’s remuneration
2024
2023 1
$'000
$'000
Audit services
— Group
1,633
1,795
— Controlled entities
1,624
1,893
Total audit services remuneration 1
3,257
3,688
Audit related assurance services
Statutory assurance services 2
258
237
Other assurance services – audit related 3
1,361
1,310
Total audit related assurance services remuneration 1
1,619
1,547
Total audit related services remuneration
4,876
5,235
Non-audit services
— Taxation compliance services
-
5
— Other services 4
100
375
Total non-audit services remuneration
100
380
Total auditor’s remuneration 5
4,976
5,615
1
Auditor's remuneration is based on estimates available at the reporting date. The estimates for 2023 were finalised after the release of
AMP Limited's FY23 financial report which has resulted in approximately $400k lower fees for Audit and Audit related assurance services
compared to the amount disclosed in FY23 financial report. This table reflects the updated fees for 2023. Additionally, certain audit-related
services previously presented as part of the non-consolidated Trusts and Funds have been re-presented as part of the 'Other assurance
services - audit related' under the AMP Limited consolidated group for a more faithful presentation of fees for the AMP Limited consolidated
group. The re-presentation has resulted in an additional amount of approximately $300k for 2023 as reflected in this note. The net impact of
these adjustments represents approximately $100k lower fees for 2023 for the AMP Limited consolidated group.
2 Statutory assurance services relate to AFSL audits and certain APRA reporting assurance required to be performed by the statutory auditor.
3 Other assurance services – audit related primarily relate to APRA returns and compliance reporting, compliance plan audits, internal control
reviews, GS007 Type 2 reporting and sustainability reporting audit.
4 Other services include general process and controls reviews, assurance readiness reviews, and transaction services.
5 Total amount excludes audit related fees and non-audit fees paid or payable for Trusts and Funds not consolidated into the group. Total fees
excluded are $3,046k (2023: $3,108k) of which $95k (2023: $140k) is for non-audit services.
6.6
New accounting standards and other developments
(a) New and amended accounting standards adopted by the AMP group
A number of new amendments to accounting standards have been adopted effective 1 January 2024. These have not had a
material impact on the financial position or performance of the AMP group.
(b) New accounting standards issued but not yet effective
A number of new accounting standards and amendments have been issued but are not yet effective, none of which have been
early adopted by the AMP group in these financial statements. These new standards and amendments, when applied in future
periods, are not expected to have a material impact on AMP group’s financial statements except for the below accounting
standards, which is not being early adopted by the group.
AASB 18 Presentation and Disclosure in Financial Statements (AASB 18)
AASB 18 was issued in June 2024 replacing AASB 101 Presentation of Financial Statements (AASB 101) and will be effective for
the group from 1 January 2027. The standard has been issued to improve how entities communicate their results within their
financial statements, with a particular focus on information about financial performance in the income statement. The key
presentation and disclosure requirements are:
(i) The presentation of newly defined categories of income and expenses and subtotals in the income statement;
(ii) The disclosure of management-defined performance measures; and
(iii) Enhanced guidance on the grouping of information.
The AMP group is currently assessing the impact of this new standard.
Notes to the financial statements
for the year ended 31 December 2024
138
(c) Other developments
Australian Sustainability Reporting Standards
—
AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information (AASB S1)
—
AASB S2 Climate-related Disclosure (AASB S2)
AASB S1 & S2 are Australian Sustainability Reporting Standards issued by the AASB in September 2024. AASB S1 is a voluntary
standard while AASB S2 is a mandatory. Both standards will be effective for the group from 1 January 2025. The standards set
out the sustainability-related and climate-related financial disclosures for sustainability reports for the preparers of general
purpose financial reports. The key features and disclosure requirements of both standards are as follows:
AASB S1
This standard deals with general requirements for the disclosure of material information about significant sustainability-related
risks and opportunities across an entity’s value chain. This adopts a four-pillar core content framework which requires
an entity to provide disclosures around governance, strategy, risk management as well as metrics and targets related to
sustainability matters.
AASB S2
This standard deals with climate-related disclosures and sets out requirements for an entity to disclose information about
its exposure to significant climate-related risks and opportunities that will facilitate users of its financial report to assess
the impact of these risks and opportunities on the entity’s financial position, performance and cash-flows, strategy and
business model. The main climate-related financial disclosure requirements are structured around the four content pillars of
governance, strategy, risk management, and metrics and targets. The standard also requires disclosures on scenario analysis
and Scope 1, Scope 2 and Scope 3 greenhouse gas emissions.
The AMP group is currently assessing the impact of these new standards, which have not been adopted for the financial year
ended 31 December 2024.
Consolidated Entity Disclosure Statement
During 2024, the Federal Government passed legislation amending the Corporations Act 2001 requiring Australian public
companies to present mandatory disclosure of detailed information about each entity within the consolidated group, including
tax residency, in a new Consolidated Entity Disclosure Statement (CEDS) in their financial reports. CEDS requires information
about each entity’s name, entity type/legal structure, place of incorporation or formation, the public company’s percentage of
ownership and country of tax residency. The amendments apply to AMP group’s 2024 financial report. Accordingly, the CEDS
has been included in this financial report and is presented on page 140.
International Tax Reform – Pillar Two Model Rules
The group is subject to global minimum top-up tax under Pillar Two tax legislation enacted by the Federal Government
effective in Australia for the year ended 31 December 2024. New Zealand and Luxembourg, where the group has subsidiaries,
have also enacted Pillar Two requirements into domestic law. Pillar Two legislation in New Zealand was not effective at the
reporting date. On current assessment, the group does not expect any liability to Pillar Two top-up tax to arise. The group has
adopted the temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax.
6.7
Events occurring after reporting date
As at the date of this report, the directors are not aware of any matters or circumstances that have arisen since the end of the
financial year that have significantly affected, or may significantly affect:
—
the AMP group’s operation in future financial years;
—
the results of those operations in future financial years; or
—
the AMP group’s state of affairs in future financial years.
6.6
New accounting standards and other developments continued
139
AMP 2024 Annual report
Overview
Directors’ report
Business review
Financial report
Additional information
Tax residency
Entity name
Entity type
Place
incorporated
/formed
Percentage
of share
capital held
(%)
Australian or
foreign
Foreign
jurisdiction
AdviceFirst Limited
Body corporate
New Zealand
100
Foreign
New Zealand
AMP Advice Holdings Pty Ltd
Body corporate
Australia
100
Australia
N/A
AMP Bank Limited
Body corporate
Australia
100
Australia
N/A
AMP Capital Finance (US), LLC
Body corporate/
Private limited
liability company
United States
100
Australia
N/A
AMP Capital Finance Limited
Body corporate
Australia
100
Australia
N/A
AMP Capital Investors Advisory (Beijing) Limited
Body corporate
China
100
Foreign
China
AMP Capital Investors International
Holdings Limited
Body corporate
Australia
100
Australia
N/A
AMP Capital Investors US Real Estate, LLC
Body corporate/
Private limited
liability company
United States
100
Australia
N/A
AMP Finance Pty Limited
Body corporate
Australia
100
Australia
N/A
AMP Financial Investment Group Holdings LimitedBody corporate
Australia
100
Australia
N/A
AMP Foundation Income Beneficiary Pty Limited
Body corporate
Australia
100
Australia
N/A
AMP Foundation Limited 1
Body corporate
Australia
100
Australia
N/A
AMP Foundation 1
Trust
N/A
N/A
Australia
N/A
AMP Group Finance Services Limited
Body corporate
Australia
100
Australia
N/A
AMP Group Holdings Limited
Body corporate
Australia
100
Australia
N/A
AMP Heritage Holdings Pty Ltd
Body corporate
Australia
100
Australia
N/A
AMP Holdings Pty Limited
Body corporate
Australia
100
Australia
N/A
AMP Lending Services Pty Limited
Body corporate
Australia
100
Australia
N/A
AMP Limited
Body corporate
Australia
N/A
Australia
N/A
AMP New Ventures Holdings Pty Ltd
Body corporate
Australia
100
Australia
N/A
AMP New Zealand Holdings Limited
Body corporate
New Zealand
100
Foreign
New Zealand
AMP Nominees (NZ) Limited
Body corporate
New Zealand
100
Foreign
New Zealand
AMP Real Assets Fund 2
Trust
N/A
N/A
Australia
N/A
AMP Services (NZ) Limited
Body corporate
New Zealand
100
Foreign
New Zealand
AMP Services Limited
Body corporate
Australia
100
Australia
N/A
AMP Superannuation Pty Limited
Body corporate
Australia
100
Australia
N/A
AMP Wealth Management Holdings Pty Ltd
Body corporate
Australia
100
Australia
N/A
AMP Wealth Management New Zealand Limited
Body corporate
New Zealand
100
Foreign
New Zealand
Australian Mutual Provident Society Pty Limited
Body corporate
Australia
100
Australia
N/A
Australian Securities Administration Pty Limited
Body corporate
Australia
100
Australia
N/A
AWM Payments Administrator Pty Ltd
Body corporate
Australia
100
Australia
N/A
AWM Services Pty Ltd
Body corporate
Australia
100
Australia
N/A
Citrus Innovations Pty Ltd
Body corporate
Australia
97
Australia
N/A
Collimate Capital Pty Limited
Body corporate
Australia
100
Australia
N/A
Genesys Group Pty Limited
Body corporate
Australia
100
Australia
N/A
Genesys Wealth Advisers Pty Limited
Body corporate
Australia
100
Australia
N/A
The table below presents the AMP group consolidated entity disclosure statement as required by s295(3A) of the Corporations
Act 2001.
Consolidated entity disclosure statement
as at 31 December 2024
140
Tax residency
Entity name
Entity type
Place
incorporated
/formed
Percentage
of share
capital held
(%)
Australian or
foreign
Foreign
jurisdiction
IDF II GP S.à r.l.
Body corporate/
Private limited
liability company
Luxembourg
100
Foreign
Luxembourg
IDF III GP S.à r.l.
Body corporate/
Private limited
liability company
Luxembourg
100
Foreign
Luxembourg
IDF IV GP S.à r.l.
Body corporate/
Private limited
liability company
Luxembourg
100
Foreign
Luxembourg
INSSA Pty Limited
Body corporate
Australia
100
Australia
N/A
ipac Asset Management Limited
Body corporate
Australia
100
Australia
N/A
Momentum Realty 2023 Limited
Body corporate
New Zealand
100
Foreign
New Zealand
N. M. Superannuation Proprietary Limited
Body corporate
Australia
100
Australia
N/A
National Mutual Funds Management (Global)
Pty Limited
Body corporate
Australia
100
Australia
N/A
National Mutual Funds Management Ltd 2
Body corporate
Australia
100
Australia
N/A
NMMT Limited
Body corporate
Australia
100
Australia
N/A
PremierOne Mortgage Advice Pty Limited
Body corporate
Australia
100
Australia
N/A
Priority One Agency Services Pty Ltd
Body corporate
Australia
100
Australia
N/A
Priority One Financial Services Pty Limited
Body corporate
Australia
100
Australia
N/A
Progress 2008 - 1R Trust
Trust
N/A
N/A
Australia
N/A
Progress 2016-1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2017-1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2017-2 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2018-1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2019-1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2020-1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2021-1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2022 1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2022-2 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2023 1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2023-2 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2024-1 Trust
Trust
N/A
N/A
Australia
N/A
Progress 2024-2 Trust
Trust
N/A
N/A
Australia
N/A
Progress Warehouse Trust No. 4
Trust
N/A
N/A
Australia
N/A
Progress Warehouse Trust No. 5
Trust
N/A
N/A
Australia
N/A
Progress Warehouse Trust No3
Trust
N/A
N/A
Australia
N/A
Solar Risk Pty Limited
Body corporate
Australia
100
Australia
N/A
Transition Shell Trust 6 2
Trust
N/A
N/A
Australia
N/A
Transition Trust 10 2
Trust
N/A
N/A
Australia
N/A
Tynan Mackenzie Pty Ltd
Body corporate
Australia
100
Australia
N/A
1
AMP Foundation Limited is the Trustee for AMP Foundation.
2 National Mutual Funds Management Ltd is the Trustee for AMP Real Assets Fund, Transition Shell Trust 6 and Transition Trust 10.
Consolidated entity disclosure statement continued
as at 31 December 2024
141
AMP 2024 Annual report
Overview
Directors’ report
Business review
Financial report
Additional information
The directors of AMP Limited declare that:
In the opinion of the directors:
(a) the consolidated financial statements and notes for the year ended 31 December 2024 are in accordance with the
Corporations Act 2001, including:
(i) complying with the Australian Accounting Standards and any further requirements in the Corporations Regulations
2001; and
(ii) giving a true and fair view of the group's financial position as at 31 December 2024 and their performance for the year
ended 31 December 2024;
(b) the consolidated entity disclosure statement as at 31 December 2024 is true and correct; and
(c) there are reasonable grounds to believe that AMP Limited will be able to pay its debts as and when they become due
and payable.
Notes to the financial statements include a statement of compliance with the International Financial Reporting Standards, as
set out in ‘About this report – (a) Understanding the AMP financial report’.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Mike Hirst
Chair
Alexis George
Chief Executive Officer and Managing Director
Sydney, 14 February 2025
Directors’ declaration
for the year ended 31 December 2024
142
Report on the audit of the Financial Report
Qualified opinion
We have audited the financial report of AMP Limited (the Company) and its subsidiaries (collectively the Group), which
comprises the consolidated statement of financial position as at 31 December 2024, the consolidated income statement,
the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, notes to the financial statements, including material accounting policy
information, the consolidated entity disclosure statement and the directors’ declaration.
In our opinion, except for the possible effects of the matter described in the Basis for qualified opinion section of our
report, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 31 December 2024 and of its
consolidated financial performance for the year ended on that date; and
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for qualified opinion
As disclosed in section 5.3 of the notes to the financial statements, the Company’s investment in China Life Pension
Company (CLPC), a foreign associate accounted for using the equity method, is carried at $525 million on the consolidated
statement of financial position at 31 December 2024. The Company’s share of CLPC’s post-tax net income of $53 million
is included in the Company’s income for the year then ended, and financial statements of CLPC are still in the process
of being audited by CLPC’s auditor at the date of this audit report. We were unable to obtain sufficient appropriate
audit evidence about the Company’s share of CLPC’s net income for the year then ended and the carrying amount of
the Company’s investment in CLPC as at 31 December 2024. Consequently, we were unable to determine whether any
adjustments to these amounts were necessary.
Our opinion on the financial report for the year ended 31 December 2023 was similarly qualified. In the audit for the
year ending 31 December 2024, we were able to obtain sufficient appropriate evidence to support the Company’s share
of CLPC’s net income that was recorded in 2023 and consequently the carrying amount of the Company’s investment
in CLPC as at 31 December 2023.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001
and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report
to the Shareholders of AMP Limited
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
143
AMP 2024 Annual report
Overview
Directors’ report
Business review
Financial report
Additional information
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial report of the current year. These matters were addressed in the context of our audit of the financial report as a
whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. In addition to the
matter described in the Basis for qualified opinion section we have determined the matters described below to be the key
audit matters to be communicated in our report. For each matter below, our description of how our audit addressed the
matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section
of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our
audit procedures, including the procedures performed to address the matters below, provide the basis for our audit
opinion on the accompanying financial report.
Credit Provisions
Financial report reference: Section 2.1: Loans and advances, Section 3.3 Financial Risk Management
Why significant
How our audit addressed the key audit matter
As at 31 December 2024 loans and advances totalled
$23,511 million against which provisions for expected
credit losses of $88 million are required to be recorded
in accordance with the requirements of Australian
Accounting standards, as disclosed in section 2.1.
This was a key audit matter due to the value of the
provisions, and the degree of judgment and estimation
uncertainty associated with the provision calculation.
Key areas of judgment included:
—
the application of the impairment requirements
of AASB 9 Financial Instruments within the Group’s
expected credit loss methodology;
—
the identification of exposures with a significant
deterioration in credit risk;
—
assumptions used in the expected credit loss
model (for exposures assessed on an individual
or collective basis); and
—
the incorporation of forward-looking information
to reflect current and anticipated future external
factors, including economic scenarios adopted
and the probability weighting determined for
each scenario.
Our audit procedures included the following:
—
We assessed the methodology of the Group’s
expected credit loss model and its underlying
methodology against the requirements of AASB 9.
—
We assessed the following for exposures evaluated
on a collective basis and associated overlays:
•
significant modelling and forward-looking
macroeconomic assumptions;
•
the basis for and data used to determine
the provision at 31 December 2024; and
•
we involved our actuarial specialists to test
the mathematical accuracy of the model
and to assess key assumptions.
—
We examined a sample of exposures on an
individual basis by:
•
assessing the reasonableness and timeliness
of internal credit quality assessments based on
the borrowers’ particular circumstances; and
•
evaluating the associated provisions by
assessing the reasonableness of key inputs
into the calculation, with particular focus on
collateral values, work out strategies and the
value and timing of recoveries.
—
We also assessed the adequacy and
appropriateness of the disclosures included
in the notes to the financial statements.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report
to the Shareholders of AMP Limited
144
Taxation
Financial report reference: Section 1.4: Taxes
Why significant
How our audit addressed the key audit matter
As presented in the consolidated statement of financial
position and Section 1.4, the Group has significant tax
balances as at 31 December 2024, being a current tax
asset of $4 million, a current tax liability of $5 million, a
deferred tax asset of $602 million, and a deferred tax
liability of $16 million.
Due to the complexity and high level of judgment
required in the following areas, we considered this to
be a key audit matter:
—
estimating future taxable income and assessing the
recoverability of tax losses and other deferred tax
assets in future years; and
—
the adequacy of provisioning and assessing the
recoverability of current tax.
Our audit procedures included the following:
—
We involved our tax specialists to assess the
application of tax laws and relevant regulations
in the determination of the Group’s tax balances,
including the Group’s assessment of the impact of
entities leaving and joining the tax consolidated
group on the determination of tax balances.
—
We examined the Group’s deferred tax asset
recoverability assessment and evaluated the
reasonableness of key assumptions, including:
•
assessing the Group’s growth and other key
assumptions and reviewing tax adjustments
made to the Group’s profit forecasts to
determine future taxable income; and
•
reviewing and assessing the Group’s analysis
to determine the period over which deferred tax
assets attributable to tax losses are forecast to
be utilised.
—
We evaluated management’s assessment of
the recoverability of current tax assets including
the underlying tax principles applied and
management forecasts.
—
We also assessed the adequacy and appropriateness
of the disclosures included in the notes to the
financial statements.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report
to the Shareholders of AMP Limited
145
AMP 2024 Annual report
Overview
Directors’ report
Business review
Financial report
Additional information
Information Technology (IT) systems and controls over financial reporting
Why significant
How our audit addressed the key audit matter
—
A significant part of the Group’s operations and
financial reporting processes are primarily reliant
on IT systems for the processing and recording
of a high volume of transactions.
—
The group-wide IT environment is complex in
terms of the scale and nature of IT systems relied
upon. IT General Controls (ITGCs) support the
continuous operation of the automated and other
IT dependent controls within the business processes
related to financial reporting. Effective ITGCs are
required to ensure that IT applications process
business data as expected and that changes
are made in an appropriate manner.
—
A fundamental component of these IT systems
and controls is ensuring that risks relating
to inappropriate user access management,
unauthorised program changes and IT
operating protocols are addressed.
We identified User Access Management including IT
privileged access controls for applications that are
critical to financial reporting is of a heightened risk and
therefore this is considered to be a key audit matter.
—
We focused our audit procedures on those
IT systems and controls that are significant
to the Group’s financial reporting process.
—
We involved our IT specialists to assist with
assessing and evaluating the significant IT
systems and controls.
—
We assessed the design and tested the operating
effectiveness of the Group’s IT controls, including
those related to user access management, change
and operating management and data integrity.
—
Where we identified design and/or operating
deficiencies in the IT control environment, our
audit procedures included the following:
•
assessed the integrity and reliability of
the systems and data related to financial
reporting; and
•
where automated procedures were supported
by systems with identified deficiencies,
we assessed compensating or mitigating
controls that were not reliant on the IT
control environment. This involved varying
the nature, timing and extent of audit
procedures performed.
Information other than the Financial Report and Auditor’s Report thereon
The directors are responsible for the other information. The other information comprises the information included in the
Company’s 2024 annual report but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form
of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
—
The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001; and
—
The consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
—
The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free
from material misstatement, whether due to fraud or error; and
—
The consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud
or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report
to the Shareholders of AMP Limited
146
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian
Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
—
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
—
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
internal control.
—
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
—
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
—
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether
the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
—
Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information
of the entities or business units within the Group as a basis for forming an opinion on the Group financial report. We are
responsible for the direction, supervision and review of the audit work performed for the purposes of the Group audit.
We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most significance in the audit of
the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report
to the Shareholders of AMP Limited
147
AMP 2024 Annual report
Overview
Directors’ report
Business review
Financial report
Additional information
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 40 to 70 of the directors’ report for the year ended
31 December 2024.
In our opinion, the Remuneration Report of AMP Limited for the year ended 31 December 2024, complies with section 300A
of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Ernst & Young
Sarah Lowe
Partner
Sydney
14 February 2025
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report
to the Shareholders of AMP Limited
148
Distribution of AMP Capital Notes 2 holdings as at 31 December 2024
Range
Number of holders
Notes held
% of issued Notes
1–1,000
2,324
829,869
30.18
1,001–5,000
338
681,826
24.79
5,001–10,000
26
177,810
6.47
10,001–100,000
21
664,141
24.15
100,001 over
3
396,354
14.41
TOTAL
2,712
2,750,000
100.00
As at 31 December 2024, the total number of shareholders holding less than a marketable parcel of five AMP Capital Notes
is three.
Twenty largest AMP Capital Notes 2 holders as at 31 December 2024
Rank
Name
Notes held
% of issued Notes
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
185,206
6.73
2
BNP PARIBAS NOMINEES PTY LTD
107,354
3.90
3
SOHIE INVESTMENTS PTY LTD
103,794
3.77
4
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
84,970
3.09
5
MUTUAL TRUST PTY LTD
72,765
2.65
6
BNP PARIBAS NOMINEES PTY LTD
69,223
2.52
7
DELMOS PTY LTD
51,408
1.87
8
JOHN E GILL TRADING PTY LTD
49,449
1.80
9
CITICORP NOMINEES PTY LIMITED
48,568
1.77
10
ELMORE SUPER PTY LTD
30,000
1.09
11
SKYPLAZA INVESTMENTS PTY LTD
27,815
1.01
12
J C FAMILY INVESTMENTS PTY LIMITED
26,853
0.98
13
INVIA CUSTODIAN PTY LIMITED
25,605
0.93
14
IOOF INVESTMENT SERVICES LIMITED
22,148
0.81
15
INVIA CUSTODIAN PTY LIMITED
21,440
0.78
16
HARMANIS HOLDINGS PTY LTD
20,000
0.73
17
MR ISAAC COHEN + MRS ESTELLE MARY COHEN + MR DAVID PETER COHEN
19,300
0.70
18
NETWEALTH INVESTMENTS LIMITED
16,391
0.60
19
CAFELO PTY LTD
15,626
0.57
20
MARK BOWDEN (PASTORAL GROUP) PTY LTD
13,396
0.49
TOTAL Top 20 holders of AMP Capital Notes 2
1,011,311
36.77
Total remaining holders balance
1,738,689
63.23
Securityholder information
149
AMP 2024 Annual report
Overview
Directors’ report
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Financial report
Additional information
Substantial holders as at 31 December 2024
The names of substantial holders in AMP Limited, and the number of ordinary shares which each substantial holder and the
substantial holder’s associates have a relevant interest in, as disclosed in substantial holding notices received by AMP Limited
before 31 December 2024, are set out below.
For details of the related bodies corporate of the substantial holders who also hold relevant interests in AMP Limited ordinary
shares, refer to the substantial holding notices lodged with ASX, under the company code AMP.
Shareholder
Number of
ordinary shares
Voting power %
State Street Corporation 1
168,276,435
6.12%
Vanguard Group 2
160,615,303
6.02%
Pinnacle Investment Management Group Limited 3
126,673,760
5.00%
1 Substantial holding as at 30/11/2023, as per notice lodged with ASX on 4 December 2023.
2 Substantial holding as at 23/05/2024, as per notice lodged with ASX on 27 May 2024.
3 Substantial holding as at 6/12/2024, as per notice lodged with ASX on 11 December 2024.
Distribution of AMP Limited shareholdings as at 31 December 2024
Range
Number of holders
Shares held
% of issued capital
1–1,000
227,396
134,176,361
5.30
1,001–5,000
165,454
331,565,518
13.10
5,001–10,000
15,924
112,739,352
4.45
10,001–100,000
11,620
270,597,375
10.69
100,001 over
518
1,682,661,233
66.46
TOTAL
420,912
2,531,739,839
100.00
As at 31 December 2024, the total number of shareholders holding less than a marketable parcel of 316 shares is 32,735.
Twenty largest AMP Limited shareholdings as at 31 December 2024
Rank Name
Units
% Units
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
626,481,399
24.75
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
349,240,679
13.79
3
CITICORP NOMINEES PTY LIMITED
338,964,773
13.39
4
BNP PARIBAS NOMS PTY LTD
53,214,653
2.10
5
NATIONAL NOMINEES LIMITED
32,341,459
1.28
6
BNP PARIBAS NOMINEES PTY LTD
24,093,959
0.95
7
BNP PARIBAS NOMINEES PTY LTD
22,652,433
0.89
8
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
9,960,335
0.39
9
CITICORP NOMINEES PTY LIMITED <143212 NMMT LTD A/C>
8,533,818
0.34
10
BNP PARIBAS NOMINEES PTY LTD BARCLAYS
8,065,272
0.32
11
NETWEALTH INVESTMENTS LIMITED
6,516,731
0.26
12
UBS NOMINEES PTY LTD
6,176,786
0.24
13
CITICORP NOMINEES PTY LIMITED
5,875,981
0.23
14
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
5,796,974
0.23
15
HEM CORPORATION NO2 PTY LTD
5,500,000
0.22
16
MESTJO PTY LTD
5,352,096
0.21
17
NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>
4,446,915
0.18
18
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
4,077,255
0.16
19
BNP PARIBAS NOMS (NZ) LTD
4,074,039
0.16
20
TUNG & LOH INVESTMENTS PTY LTD
3,945,445
0.16
Total
1,525,311,002
60.25
Total remaining holders balance
1,006,428,837
39.75
Securityholder information
150
AMP Limited shares voting rights
The voting rights attached to AMP Limited ordinary shares are that each registered holder of shares present in person
(or by proxy, attorney or representative) at a meeting of shareholders has one vote on a vote taken by a show of hands,
and one vote for each fully paid share held on a vote taken by a poll.
On-market acquisitions for employee incentive schemes during the financial year
ended 31 December 2024
Rights granted under the Equity Incentive Plan during 2024:
—
6,867,939 Share Rights, of which the number of holders was 60.
—
8,087,316 Performance Rights, of which the number of holders was 10.
—
No Options were awarded in 2024.
Number of share rights on issue as at 31 December 2024
Size of holding
Number of holders
Number of
share rights
1–1,000
–
–
1,001–5,000
–
–
5,001–10,000
–
–
10,001–100,000
34
2,500,425
100,001 and over
52
15,346,243
Total
86
17,846,668
Number of performance rights on issue as at 31 December 2024
Size of holding
Number of holders
Number of
Performance
rights
1–1,000
–
–
1,001–5,000
–
–
5,001–10,000
–
–
10,001–100,000
–
–
100,001 and over
12
17,656,660
Total
12
17,656,660
On-market acquisitions for employee incentive schemes during the financial year
ended 31 December 2024
4,859,632 AMP Limited ordinary shares were purchased on-market to satisfy entitlements under AMP’s employee incentive
schemes; 3,816,814 at an average of $1.115412; 776,743 at an average of $1.6276; and 266,075 at an average of $1.5902.
Stock exchange listings
AMP Limited’s ordinary shares are quoted on the Australian Securities Exchange. AMP de-listed from the New Zealand Stock
Exchange on 7 February 2022. AMP capital notes are quoted on the Australian Securities Exchange.
Restricted securities
There are no restricted securities on issue.
Securityholder information
151
AMP 2024 Annual report
Overview
Directors’ report
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Additional information
AUM based revenue
Includes revenue derived from AUM or AUM-linked sources (eg account and
administration fees). For the Australian and New Zealand Wealth Management businesses
this includes administration and investment revenue on superannuation, retirement and
investment products.
Business finance
loans
Business loans provided to financial advisers and mortgage brokers, which are secured
by a General Security Agreement over the business assets, including the client servicing
rights, or other assets. Commercial lending credit policy, process and rates apply
to these loans.
Common Equity Tier 1
capital
Comprises the highest quality components of capital that fully satisfy all of the following
essential characteristics:
a) provide a permanent and unrestricted commitment of funds
b) are freely available to absorb losses
c) do not impose any unavoidable servicing charge against earnings, and
d) rank behind the claims of depositors, policyholders and other creditors in the event
of winding up.
Contingent liabilities
A situation existing at reporting date, where past events have led to a possible obligation,
the outcome of which depends on uncertain future events, or an obligation where the
outcome is not sufficiently probable or reliably measurable to warrant recognising the
liability at this reporting date.
Controllable costs
Include operational and project costs and exclude variable costs, provision for bad and
doubtful debts and interest on corporate debt.
Corporate debt
Borrowings used to fund shareholder activities of the AMP group, including the impact
of any cross-currency swaps entered into.
Cost to income ratio
Calculated as controllable costs divided by gross margin. Gross margin is calculated as
EBIT plus investment income (pre-tax) plus controllable costs. For the calculation of Group
and Bank cost to income ratios, gross margin excludes loan impairment expense.
Defined benefit plan
A scheme that provides a retirement benefit, usually based on salary and/or a predetermined
formula for calculating that benefit. Unlike an accumulation scheme, the retirement benefit
and method of calculation is known to the member at all times.
Glossary
152
Earnings per share
(EPS) (statutory)
Earnings per share calculated as NPAT (statutory) of AMP Limited divided by the statutory
weighted average number of ordinary shares.
Earnings per share
(EPS) (underlying)
Calculated as NPAT (underlying) divided by the basic weighted average number of
ordinary shares.
Franking rate
The amount of tax AMP has already paid on a dividend payment. This can be used
as a tax credit by Australian resident shareholders. The franking rate is determined
by AMP’s taxable income. AMP’s policy is to always frank dividends at the highest
possible rate.
Incentive pool
The money used for the payment of short-term incentive (STI) rewards. The pool
size varies each year depending on AMP’s performance against financial and
non‑financial measures.
Intangibles
Represents acquired goodwill, distribution networks such as customer lists, capitalised
costs, and other assets.
Interest cover
(statutory)
Rolling 12 month post-tax basis as NPAT (statutory) before interest expense on corporate
debt for the year divided by interest expense on corporate debt.
Interest cover
(underlying)
Rolling 12 month post-tax basis as NPAT (underlying) before interest expense on
corporate debt for the year divided by interest expense on corporate debt.
Investment income
The income on shareholder assets invested in income producing investment assets (as
opposed to income producing operating assets) attributed to the BUs (including Group).
The return on AMP Bank income producing investment assets is included in AMP Bank
NPAT.
Shareholder funds invested in income producing assets may be higher or lower than BU
capital due to the working capital requirements of the business unit.
Key management
personnel (KMP)
The Chief Executive Officer (CEO), nominated direct reports of the CEO and the
non‑executive directors, who have authority and responsibility for planning, directing
and controlling the activities of AMP.
Glossary
153
AMP 2024 Annual report
Overview
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Additional information
Long-term incentive
(LTI)
An executive reward for helping AMP achieve specific long-term performance targets.
It is awarded in the form of share rights and/or performance rights to motivate executives
to create long-term value for shareholders. A right is an entitlement to receive one AMP
Limited share per right subject to meeting the vesting conditions.
Net interest margin
(NIM) (AMP Bank)
Net interest income over average interest earning assets. For the purpose of NIM
calculation, average interest earning assets balance includes the value of mortgage
offset account.
Net Profit After Tax
(NPAT)
Also referred to as NPAT (underlying), represents shareholder attributable net profit or
loss after tax excluding non-recurring revenue and expenses.
Net Profit After Tax
(NPAT) (statutory)
Reflects the net profits (or losses) distributable to AMP Limited shareholders in a given period.
Non-executive
directors (NEDs)
Board directors who are not employees of AMP (they are independent).
Performance rights
A form of executive remuneration designed to reward long-term performance. Selected
executives are granted performance rights. Each performance right is a right to acquire
one AMP share after a performance period if a specific performance hurdle is met.
Return on equity
(RoE) (statutory)
NPAT (statutory) of AMP Limited divided by the average of AMP shareholder equity for
the period.
Return on equity
(RoE) (underlying)
NPAT (underlying) of AMP Limited divided by the average of AMP shareholder equity for
the period.
Share right
A share right is an entitlement to acquire one AMP share at the end of a vesting period,
as long as the service conditions are met.
Short-term incentive
(STI)
A form of variable remuneration that is based on AMP achieving performance against
a scorecard comprising financial, strategic, customer, people, reputation and risk
related targets and objectives. Individual STI outcomes are assessed with reference
to the scorecard, risk, the holistic performance of AMP, shareholder experience and
individual performance and behaviours. For some executives, a portion is paid in cash
and the remaining amount is deferred into share rights and restricted for a specified time,
strengthening the alignment with shareholders’ interests.
Glossary
154
Total shareholder
return (TSR)
A measure of the value returned to shareholders over a period of time. It takes into
account the changes in market value of AMP shares, plus the value of any dividends paid
and capital returns on the shares.
Variable costs
Include costs that vary directly with the level of related business (eg investment
management fees and banking commissions and securitisation costs).
Vesting
Remuneration term defining the point at which the required performance hurdles
and/or service requirements have been met, and a financial benefit may be realised
by the recipient.
Glossary
155
AMP 2024 Annual report
Overview
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Additional information
Registered office of
AMP Limited
Level 29
50 Bridge Street
Sydney NSW 2000
Australia
W: amp.com.au
AMP Investor Relations
Level 28, 50 Bridge Street
Sydney NSW 2000
Australia
T: 1800 245 500 (Aus)
T: 0800 440 195 (NZ)
T: +612 8364 6053 (other countries)
E: shares@amp.com.au
W: amp.com.au/shares
AMP products and policies
AMP Super Fund
T: 131 267
E: ampsuper@amp.com.au
AMP Bank
T: 13 30 30
E: info@ampbanking.com.au
North
T: 1800 667 841
E: North@amp.com.au
New Zealand
T: 0800 267 005
E: investments@amp.co.nz
International
T: +612 8048 8162
Australia
AMP share registry
Reply Paid 2980
Melbourne VIC 3001
T: 1300 654 442
Other countries
AMP share registry
GPO Box 2980
Melbourne VIC 3001
Australia
T: +613 9415 4051
AMP share registry
Contact us
E: ampservices@computershare.com.au
AMP is incorporated and domiciled in Australia
Corporate directory
156
amp.com.au
@AMP_AU or @ampfoundation
facebook.com/AMPaustralia
linkedin.com/company/amp
AMP Limited ABN 49 079 354 519