AMP Limited (ASX: AMP) shares could be in for a welcome boost in price when the ASX begins trade today following the release of its half-year results this morning.
In the six months to 30 June 2015, AMP reported a statutory profit of $507 million, up 33% on the same period a year earlier. Underlying profit, which strips away one-off items, was 12% higher at $570 million, and ahead of analysts' expectations of $560 million.
A 13% jump in profit from the Australian Wealth Management division and robust performances from both AMP Bank and AMP Capital helped bolster the group's interim result.
"This is a very good result with contemporary businesses continuing to deliver growth," CEO Craig Meller said.
He added that the result reflected ongoing strength in the core Australian businesses, but also green shoots from the group's international exposure: "Together with the improvements across our Australian businesses, it is also particularly encouraging to see strong progress from our partnership in China."
Pleasingly, AMP's board resolved to declare an interim dividend of 14 cents per share – up from 12.5 cents per share last year. Franked at 85%, the company says the dividend represents a payout ratio of 73% of underlying profit and is within the target range of 70% to 80%.
AMP's dividend reinvestment plan will be offered for the interim payment, but no discount will apply to new shares.
