Highlights

  • Jefferies issued a Buy rating on AMP with a target price of AUD 2.20 following the share price fall to AUD 1.26.
  • AMP’s underlying NPAT rose 20.8% to AUD 285 million for FY25.
  • Total assets under management increased 9% to AUD 161.7 billion.

AMP Ltd (ASX:AMP) shares dropped 26.24% to AUD 1.26 following the release of its FY25 results on 12 February 2026. Despite the sharp decline, Jefferies issued a Buy rating on the wealth management group, setting a target price of AUD 2.20, implying potential upside from current levels. The broker update came as AMP reported growth in underlying earnings and maintained its dividend guidance.

Broker Maintains Positive Stance

Following AMP’s results and the subsequent share price decline, Jefferies highlighted valuation upside and reiterated a Buy recommendation. The broker’s AUD 2.20 target price compares with the stock’s latest traded level of AUD 1.26.

The call comes after AMP posted higher underlying earnings across several divisions, while statutory profit was lower due to legacy-related items and business simplification costs.

Earnings Growth Across Core Divisions

AMP reported underlying net profit after tax (NPAT) of AUD 285 million for FY25, up 20.8% from AUD 236 million in FY24.

Platforms delivered underlying NPAT of AUD 106 million, up 9.3%, supported by net cashflow growth. Superannuation & Investments recorded a 14.8% rise in underlying NPAT to AUD 62 million. New Zealand Wealth Management posted underlying NPAT of AUD 39 million, up 5.4%.

AMP Bank’s underlying NPAT declined 9.8% to AUD 55 million, reflecting costs associated with scaling AMP Bank GO. The Group segment reported underlying NPAT of AUD 23 million, compared with a loss in the prior year, aided by higher contributions from China partnerships.

Statutory NPAT was AUD 133 million, down from AUD 150 million in FY24.

Assets and Cashflow Momentum

Total assets under management (AUM) rose 9% to AUD 161.7 billion, driven by positive cashflows and market movements.

Platforms recorded net cashflows (excluding pension payments) of AUD 5.1 billion for the year, while Superannuation & Investments reduced net cash outflows by 47.4% to AUD 542 million.

Controllable costs declined 6.9% to AUD 603 million, in line with prior commitments. Underlying earnings per share increased 25.6% to 11.3 cents.

The Board declared a final FY25 dividend of 2.0 cents per share, 20% franked, bringing the total annual dividend to 4.0 cents per share.

Leadership Transition

CEO Alexis George confirmed she will step down at the end of March, with CFO Blair Vernon set to assume the role. The company noted completion of legacy class action settlements and continued portfolio repositioning during FY25.

AMP shares fell sharply following the FY25 announcement, trading at AUD 1.26 on the day. Despite the decline, Jefferies issued a Buy rating with a AUD 2.20 target price.

Frequently Asked Questions (FAQ)

  1. Why did AMP shares fall on 12 February 2026?
    AMP shares declined 26.24% following the release of FY25 results, despite reporting growth in underlying earnings.
  2. What is Jefferies’ rating on AMP?
    Jefferies issued a Buy rating with a target price of AUD 2.20.
  3. How did AMP perform in FY25?
    AMP reported underlying NPAT of AUD 285 million, AUM of AUD 161.7 billion, and declared a total FY25 dividend of 4.0 cents per share.