The AMP Ltd (ASX: AMP) share price might be giving the company's latest update a lukewarm reception, but it's still better than what it could be.
In afternoon trade, shares in the wealth management business are swapping hands for $1.165 — roughly flat with yesterday's closing price. However, the AMP share price did sneak a little higher, reaching $1.175, earlier in the day.
The paltry performance possibly isn't worth writing home about. Though, it's a darn sight better than the 0.48% fall put on by the S&P/ASX 200 Index (ASX: XJO) today.
Let's unpack the announcement helping AMP shares outperform on Friday.
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What's helping the AMP share price today?
While most ASX financial shares are getting the boot today, the AMP share price is catching a bid from investors.
It appears the market is content with the figures posted by AMP in its third-quarter assets under management (AUM) and cash flows update.
According to the release, AMP experienced positive inflows and growth across much of its operations. For example, the company's banking division — AMP Bank — recorded growth of 1.4 times above system. In turn, the bank's loan book increased by $0.6 billion to $23.3 billion despite market headwinds.
Furthermore, the company's financial platform offerings — categorised under the 'Platforms' division — witnessed net cash inflows of $363 million during the quarter. Notably, the 'North' platform captured $483 million in inflows from independent financial advisers — increasing by 45% from the prior corresponding period.
Another improvement was the reduction in net cash outflows from the Australian Wealth Management (AWM) segment. Specifically, net outflows were reduced to $0.8 billion from $1.9 billion in the prior corresponding period.
However, not all third-quarter numbers were as rosy. For example, assets under management through AWM tumbled to $121.4 billion, down from $125.1 billion. Nonetheless, it looks like investors aren't too worried about the decrease considering the AMP share price gain.
What did management say?
AMP chief executive, Alexis George, provided her commentary on the Q3 numbers, stating:
We have made strong progress in the third quarter, which is reflected in the cashflows we've announced today. While challenging investment markets continued to have an impact on assets under management, we have seen a significant improvement in our cashflows as more customers choose to join or stay with AMP.
Additionally, George dished out some points on what AMP is up to so far in the fourth quarter:
In the fourth quarter, we have already launched our digital mortgage and unique-to -market retirement offer. These are important strategic deliverables that will support AMP's longer-term growth and deliver on our purpose to help people create their tomorrow
The AMP share price is up 16.5% so far in 2022. For reference, this exceeds the performance of all of the big four banks.
