Highlights

  • Macquarie assigns an “Outperform” rating with a target price of AUD 1.94
  • Q1 2026 Platforms net cashflows surge 45% year-on-year to $1.1 billion
  • $150 million share buyback signals capital return confidence

Shares of AMP Limited (ASX: AMP) are currently trading at $1.415, down 2.076% on 17 April 2026, reflecting continued volatility in investor sentiment. The stock has seen fluctuating trading activity, with volume exceeding 10 million shares, suggesting active institutional and retail participation.

With a market capitalization of approximately $3.65 billion, AMP remains a mid-cap player within Australia’s financial services sector. The bid-offer range between $1.275 and $1.520 highlights a relatively wide spread, indicating ongoing uncertainty about near-term valuation drivers.

Despite the recent dip, the stock has drawn renewed attention following a constructive broker update. Macquarie Group has issued an “Outperform” rating, accompanied by a target price of AUD 1.94, implying meaningful upside potential from current levels. This positive stance is largely underpinned by improving operational metrics and capital management initiatives.

Q1 2026 Business Update: Signs of Operational Recovery

AMP’s first-quarter 2026 update presents a narrative of gradual recovery, particularly across its wealth management operations. The standout metric was Platforms net cashflows, which rose 45% year-on-year to $1.1 billion, compared to $740 million in Q1 2025.

This growth reflects strengthening adviser engagement and improved product offerings. The company’s strategic focus on rebuilding distribution channels appears to be yielding results, especially through enhanced adviser relationships developed over the past two years.

Meanwhile, Superannuation & Investments (S&I) recorded net cash outflows of $80 million, representing a 26% improvement from the prior year. Although still negative, the trend suggests stabilisation in a segment that has historically faced persistent outflows.

The New Zealand Wealth Management division posted net cashflows of $41 million, down from $57 million a year earlier, reflecting softer regional conditions amid broader macroeconomic uncertainty.

Assets Under Management and International Growth

Total assets under management (AUM) across AMP’s wealth businesses stood at $155.9 billion, influenced partly by market movements during the quarter. While market volatility has weighed on asset values, underlying structural growth trends remain intact.

A notable contributor to AMP’s long-term growth story is its exposure to China through China Life Pension Company (CLPC). CLPC reported a 17% increase in AUM for FY2025, reaching approximately RMB 2.4 trillion (around A$515 billion).

This expansion underscores the strategic importance of AMP’s international partnerships, particularly in high-growth retirement markets. Demographic tailwinds in China, including an aging population and evolving pension frameworks, continue to support long-term demand for wealth and retirement solutions.

AMP Bank Performance and Deposit Growth

AMP’s banking division delivered stable performance, with the loan book remaining steady at $24.1 billion. However, the more notable development was the rapid growth in deposits under its AMP Bank GO offering.

Deposits increased by $942 million during the quarter, representing a significant rise of $632 million compared to Q4 2025. This surge has been driven by competitive savings rates and promotional initiatives, including partnerships such as frequent flyer incentives.

Management now expects FY2026 AMP Bank GO deposits to exceed $1.5 billion, indicating strong momentum in customer acquisition and engagement. The bank continues to focus on achieving an optimal mix of transaction and savings accounts to diversify funding sources.

Strategic Initiatives and Product Innovation

AMP has been actively investing in product innovation and digital capabilities to strengthen its competitive positioning. The launch of the North Interactive Wealth Portal has received positive feedback from advisers, enhancing user experience and functionality.

According to industry studies, the North platform has achieved top rankings across multiple adviser-centric categories, including retirement solutions and overall proposition. This reinforces AMP’s strategy of rebuilding its reputation among financial advisers—a key distribution channel.

In addition, AMP introduced a new small and medium business employer superannuation solution, aimed at improving member acquisition and retention. By integrating directly with HR and payroll systems, the offering seeks to simplify administrative processes for employers and employees alike.

Capital Management: Share Buyback Signals Confidence

One of the most significant announcements in the Q1 update is the commencement of a $150 million on-market share buyback. This move reflects management’s confidence in the company’s capital position and future earnings potential.

Share buybacks can serve multiple purposes, including improving earnings per share and signalling undervaluation to the market. In AMP’s case, the buyback aligns with its broader strategy of returning surplus capital to shareholders while maintaining flexibility for growth initiatives.

The decision also comes amid ongoing efforts to optimise capital usage within AMP Bank, including potential capital relief transactions aimed at reducing regulatory capital requirements.

Leadership Commentary and Strategic Direction

CEO Blair Vernon emphasised that accelerating organic growth in wealth management remains a top priority. The improvement in cashflows across Platforms and S&I is viewed as evidence of positive momentum.

Management acknowledges that external factors—such as market volatility and cost-of-living pressures—continue to impact client sentiment. However, the long-term outlook for the wealth and retirement sector remains supported by demographic trends and increasing demand for financial advice.

AMP’s strategy is centered on deepening adviser relationships, expanding product capabilities, and leveraging its international partnerships. These initiatives are expected to drive sustainable growth over the medium term.

Broker Perspective: Why Macquarie is Constructive

The Outperform rating from Macquarie reflects growing confidence in AMP’s turnaround trajectory. The broker’s target price of AUD 1.94 suggests that the market may not yet fully reflect the company’s improving fundamentals.

Key factors likely influencing this view include:

  • Strong growth in Platforms cashflows, indicating successful execution of adviser strategy
  • Gradual improvement in S&I outflows, reducing a long-standing drag on performance
  • Capital management initiatives, including the share buyback
  • Expansion opportunities in international markets, particularly China

While short-term headwinds remain, the broker’s stance suggests that AMP is transitioning from a restructuring phase toward a more stable growth profile.

Conclusion

AMP Limited’s latest update highlights a company in transition, balancing operational improvements with ongoing market challenges. The strong growth in Platforms cashflows and improving trends in Superannuation & Investments signal meaningful progress in core business segments. At the same time, capital management initiatives such as the share buyback reinforce management’s confidence in the company’s financial position. Despite recent share price weakness, the positive broker outlook from Macquarie underscores a shift in sentiment, suggesting that AMP’s recovery narrative is gaining credibility. The interplay between execution, market conditions, and investor perception will remain central to the stock’s trajectory in the coming quarters.