Highlights

  • Macquarie assigns an outperform rating with a target price of AUD 1.94
  • Platforms net cashflows surge 45% to $1.1 billion in 1Q26
  • Superannuation outflows continue to improve while AMP Bank deposits show strong growth

Shares of AMP Limited (ASX:AMP) were recently trading at $1.442, reflecting a marginal gain of 0.17% in the latest session. The relatively muted share price movement comes despite a constructive operational update, suggesting that investors are taking a measured view of the company’s ongoing transformation.

With a market capitalisation of approximately $3.64 billion, AMP continues to rebuild its position within Australia’s wealth management and banking sectors. Trading volumes remain active, indicating steady investor interest following the latest quarterly update.

The stock’s performance in recent periods has been influenced by progress in business simplification, cashflow trends, and capital management initiatives, including the commencement of a share buyback.

Macquarie Outperform Rating Signals Confidence in Turnaround

The positive stance from Macquarie Group, which has assigned an outperform rating and a target price of AUD 1.94, reflects confidence in AMP’s improving operational trajectory.

Macquarie’s outlook appears to be driven by strengthening platform inflows, stabilisation in superannuation outflows, and ongoing progress in AMP Bank. The rating suggests that the broker sees potential for further value realisation as the company continues to execute its strategy.

Platform Business Drives Strong Cashflow Growth

AMP’s Platforms segment delivered a standout performance in the first quarter of FY26, with net cashflows increasing by 45% to $1.1 billion. This growth highlights the segment’s role as a key driver of the company’s overall performance.

The Platforms business, which includes the North platform, has benefited from strong adviser engagement and continued inflows into managed portfolios. Assets under management (AUM) for managed portfolios reached $25.4 billion, reflecting sustained demand despite market volatility.

The launch of the North Interactive Wealth Portal represents a significant enhancement to the platform’s capabilities, offering advisers improved tools for client engagement and retirement planning. This development aligns with AMP’s broader strategy of leveraging technology to strengthen its value proposition.

While total platform AUM declined slightly due to market movements, the underlying inflow momentum indicates continued growth potential.

Superannuation Outflows Show Continued Improvement

The Superannuation & Investments segment reported net cash outflows of $80 million for the quarter, representing a 26% improvement compared to the prior corresponding period. This trend suggests that AMP’s efforts to stabilise its superannuation business are gaining traction.

The improvement has been driven by a focus on member retention and new customer acquisition, supported by digital advice tools and enhanced product offerings. Initiatives such as the new small and medium business (SMB) employer super solution are aimed at expanding the customer base and improving engagement.

Despite the improvement in flows, AUM in the segment declined due to market movements, highlighting the impact of external factors on asset values.

AMP Bank Growth Adds Diversification

AMP Bank delivered strong growth in deposits during the quarter, with AMP Bank GO deposits increasing to $942 million. This represents a significant rise from the previous quarter, driven by competitive product offerings and marketing initiatives.

The bank’s ability to attract new customers is notable, with a large proportion of depositors being new to the franchise. This growth supports diversification within AMP’s business model, providing an additional revenue stream beyond wealth management.

The total loan book remained stable at $24.1 billion, reflecting a focus on maintaining margins and prioritising higher-quality lending opportunities. The company continues to explore capital optimisation strategies to improve returns in the banking segment.

International Partnerships and AUM Growth

AMP’s partnerships in China, particularly through China Life Pension Company (CLPC), continue to contribute to its growth narrative. Assets under management in CLPC increased by 17% to approximately RMB 2.4 trillion, reflecting strong expansion in the Chinese pension market.

This growth underscores the strategic importance of AMP’s international exposure, providing access to a large and growing market. The Chinese pension system’s ongoing development offers long-term opportunities, although it remains subject to regulatory and market dynamics.

In New Zealand, wealth management net cashflows were positive at $41 million, although lower than the prior period due to market uncertainty and term deposit outflows.

Capital Management and Shareholder Returns

A key development in the quarter is the commencement of a $150 million on-market share buyback. This initiative reflects confidence in the company’s capital position and its commitment to returning value to shareholders.

The buyback forms part of AMP’s broader capital management strategy, which includes optimising its balance sheet and reallocating resources to higher-return areas. Such actions are often viewed positively by investors, particularly when supported by improving operational performance.

Outlook and Strategic Direction

AMP has maintained its broader FY26 guidance, with the exception of upgraded expectations for AMP Bank GO deposits, which are now projected to exceed $1.5 billion. This reflects the strong momentum in the banking segment.

The company’s strategy remains focused on strengthening its core wealth platforms, improving customer outcomes, and enhancing operational efficiency. Progress in these areas is critical to sustaining the turnaround and building long-term value.

At the same time, AMP continues to operate in a competitive and evolving financial services landscape, where market conditions and regulatory developments can influence performance.

Conclusion

AMP Limited’s first-quarter update highlights a company making steady progress in its transformation journey. Strong growth in platform cashflows, improving superannuation outflows, and robust deposit growth in AMP Bank demonstrate positive momentum across key segments.

The outperform rating from Macquarie reflects growing confidence in this trajectory, although the share price response remains measured. This suggests that investors are awaiting further evidence of sustained improvement before fully re-rating the stock.

As AMP continues to execute its strategy, its ability to maintain flow momentum, manage costs, and optimise capital allocation will be central to its performance and market perception in the periods ahead.