AMP (ASX:AMP) share price on watch after Q1 update

The AMP Ltd (ASX:AMP) share price will be one to watch on Thursday following the release of its first quarter update this morning…

| More on:
ASX share price on watch represented by woman investor looking at ASX financial results on laptop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AMP Ltd (ASX: AMP) share price will be one to watch this morning.

This follows the release of the financial services company's first quarter update.

What did AMP report?

According to the release, for the three months ended 31 March, AMP recorded a $1.6 billion increase in Australian wealth management (AWM) assets under management (AUM) to $125.7 billion.

This was driven by improved investment markets, which offset AWM net cash outflows of $1.5 billion. Though, it is worth noting that $448 million of these outflows relate to regular pension payments to clients.

The AMP Bank business recorded a $0.2 billion increase in its total loan book to $20.8 billion. This was driven by growth in owner-occupied loans.

Things weren't quite as positive for its AMP Capital business. AMP Capital's AUM fell 1.7% to $186.5 billion during the quarter. This reflects net cash outflows from public markets, the sale of the Global Companies capability, and its share of listed NZ REIT Precinct Properties New Zealand Limited.

AMP Capital also recorded external net cash outflows of $1.3 billion during the quarter. This was driven primarily by fixed income outflows, as well as planned divestments of assets in infrastructure equity closed-end funds. Management notes that the divestments, reflected in cash outflows, delivered strong performance outcomes for clients.

Management commentary

AMP's Chief Executive, Francesco De Ferrari, was pleased with the quarter.

He said: "Business performance remained resilient during the first quarter as we continued to make progress on delivery of our transformation strategy to become a simpler, client-led business."

"In Australian wealth management our cashflows are showing underlying signs of improvement, with a reduction in outflows from corporate super mandates and a reduced impact from Protecting Your Super legislation. The increase to our assets under management in our wealth management business reflects continued improvement in investment markets in Q1. We supported clients through the period with A$448 million in pension payments, which are reflected in cash outflows."

Looking ahead, Mr De Ferrari appears optimistic on the future.

He commented: "We are accelerating change within AMP, having made strong progress on addressing our legacy issues, including our client remediation program, which is close to 90 per cent complete. We remain focused on delivering critical priorities to progress our transformation over the next quarter and continue positioning the business for future growth."

Where next for the AMP share price?

The AMP share price is down a disappointing 25% this year. Whether this update will be enough to get it heading higher again, time will tell.

One broker that isn't overly positive is Ord Minnett. On Wednesday, the broker put a hold rating and $1.35 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Opinions

If I had a big cash pile like Warren Buffett, here's how I'd spend it in 2025

I'd put Buffett's billions to work straight away.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
52-Week Highs

5 ASX 200 shares hitting multi-year highs after strongly rebounding from tariff turmoil

These stocks have hit new price milestones amid a day in the green for the ASX 200.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

3 key takeaways from the 2025 Macquarie Conference

More than one hundred companies presented at the Macquarie Conference this year. Here’s what we learned.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why Chrysos, GQG Partners, Macquarie, and Webjet shares are storming higher today

These shares are ending the week on a positive note. But why?

Read more »

A young man sits at his desk working on his laptop with a big smile on his face.
Share Gainers

The top 3 ASX 200 trades since the Liberation Day dip

These companies are up at least 35% in just over a month.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Healius, Light & Wonder, REA Group, and Regis Resources shares are falling today

These shares are ending the week in the red. Let's find out why.

Read more »