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Somewhat Bearish -40

AMP leaders defend share price, tout AI future

AI-generated analysis

📉 AMP shares fell over 25% in February after an 11% drop in full-year profit, but have since recovered with a 2.3% rise to $1.34 following the annual meeting.

🗣️ Chair Mike Hirst described the recent reporting season as particularly volatile, comparing AMP's reaction to other firms like CSL and Temple & Webster.

📈 New CEO Blair Vernon outlined priorities including organic growth, capital discipline, and significant adoption of artificial intelligence across operations.

💻 84% of AMP staff use core AI tools weekly to enhance productivity through transcription, quality checking, and automating corporate functions.

🏦 The company's "North" platform for superannuation and investment management gained momentum, attracting new financial advisors and improving cash flows.

📊 The platform drew 120 advisors last year while delivering strong investment performance with majority members receiving top quartile returns.

⚖️ Chair Hirst acknowledged market volatility driven by energy price shocks and inflation fears related to the Middle East conflict.

🏡 Shareholders questioned AMP's retail banking strategy, particularly regarding the Bank Go app which uses a proven UK platform now operating overseas.

💰 2025 net profit fell to $133 million, continuing a decline from $387 million in 2022 despite the company's focus on future technological growth.

🚀 CEO Vernon emphasized there is "no sideline position" available given the disruptive nature of current market and technological moments.

🎯 AMP aims to leverage deep retirement knowledge combined with new AI technology to create seamless experiences for advisors and members.

🤖 The company plans to continue leveraging its experience in the retirement sector alongside AI innovation to improve tools for clients.

Bullish Signals
  • AMP shares rose 2.3 per cent to $1.34 following the annual meeting in Sydney on Friday, reversing some of the earlier decline.
  • New chief executive Blair Vernon has outlined key priorities including organic growth, capital discipline, and the adoption of artificial intelligence to enhance productivity gains.
  • A significant majority of employees are already using AI regularly, with 84 per cent using core AI tools on a weekly basis for transcription, quality checking, and automation.
  • The North platform continues to gain momentum, drawing in new-to-platform and existing financial advisors which is translating into industry recognition and improving net cash flows.
  • AMP delivered strong investment performance with the majority of members receiving top quartile returns in their superannuation and investments business.
  • The AI deployment across contact centres for transcription, quality checking, and note-taking is just the start, positioning the company to create seamless experiences and intuitive tools.
  • The Bank Go platform picked up is a proven platform from the UK that is also now operating in other countries overseas, addressing concerns about the retail banking offering.
Risk Factors
  • AMP shares have already tumbled over 25% in February after reporting an 11% fall in full-year profit, signaling significant investor concern.
  • The company admits the medium-term outlook is clouded by energy price shocks and inflation fears sparked by the Middle East conflict.
  • Net profit fell to $133 million in 2025, continuing a string of declines from a high of $387 million in 2022.
  • Analysts currently have a share price target of around $1.80, yet AMP leaders are defending the stock after it dropped to $1.34 post-earnings.
  • Chair Mike Hirst conceded that volatility is the key impact and investors must ride out an uncertain storm without knowing how long it will last.
  • Shareholders have raised concerns about the group's retail banking offering and the necessity of its AMP Bank Go app following previous analyst questions.
  • The platform for Bank Go was acquired from the UK, raising questions about the integration of overseas assets into the Australian market.
Full Analysis
AMP leaders have defended the company's share price following a significant decline, emphasizing their focus on future growth through artificial intelligence integration rather than dwelling on recent financial underperformance. At AMP's annual meeting in Sydney held on Friday, chair Mike Hirst characterized the reporting season as particularly volatile, noting that other comparable firms like CSL and Temple & Webster also faced outsized market reactions despite not performing poorly. This context comes after AMP reported an 11 per cent fall in full-year profit, which contributed to a share price drubbing of more than 25 per cent in February; however, the stock rebounded by 2.3 per cent to $1.34 on Friday following the announcement that analysts currently have a target price around $1.80 for the shares. New chief executive Blair Vernon outlined his key priorities during the meeting, centering on organic growth, capital discipline, and the adoption of artificial intelligence to enhance productivity. According to former chief financial officer Mr. Vernon, 84 per cent of employees use AMP's core AI tools weekly, with applications deployed in contact centres for transcription and quality checking, automation of corporate functions, and note-taking within the super and pension wrap platform known as North. Mr. Hirst highlighted that innovation in North has helped attract new advisors to the platform, improving net cash flows in the superannuation and investments business, while the majority of members received top quartile investment returns despite broader market volatility clouded by energy price shocks and inflation fears related to the Middle East conflict. Shareholders also addressed concerns regarding AMP's retail banking offering and its AMP Bank Go app, with Mr. Hirst explaining that the platform is a proven acquisition from the UK that is currently operating in other international markets. The discussion reflects the broader financial challenges faced by the group, as AMP's 2025 bottom-line net profit fell to $133 million, marking the latest in a series of declines dating back to 2022 when the company recorded a profit of $387 million. Both Mr. Hirst and Mr. Vernon stressed that there is no neutral position to take during this disruptive period, urging investors to ride out market volatility while focusing on the long-term transformation enabled by deep knowledge in retirement planning combined with new technology to create seamless experiences for advisors and members.