AMP Limited 1HCY26 First Take: China Life pensions strong, AMP flows strong - bank NIM weak. Capital management helps the story.

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

AMP Limited

1HCY26 First Take: China Life pensions strong, AMP

flows strong - bank NIM weak. Capital management

helps the story.

Overweight

AMP.AX, AMP AU

Price (05 Aug 26):A$2.18

Price Target (Jun-27):A$2.09

Key takeaways: 1H26 underlying NPAT of $174.0m came in modestly ahead of

JPMe ($171.0m) and at the middle of the pre-released $170–180m range.

Statutory NPAT of $154.0m was in line with our $154.0m forecast. The beat vs

JPM was driven by tax (due to China Life contribution) and interest costs

($16.0m, materially lower than JPMe at $24.0m).

AMP Divisional numbers were behind, but we had increased them sharply with

the early result release 2 weeks ago, and so it is a mix differential at a group level,

not an underlying miss vs our original expectations. Flows were actually very

strong in platforms and S&I, although the bank showed weakness on NIM - but

this reflected in part upstreaming of capital / securitisation.

There were new details provided on CLPC - revenue growth in FY25 of 29%,

NPAT growth of 40.3% with upgraded ROE guidance for all partnerships now

12 - 15% rather than the previous 10%. Guidance is broadly in line with JPMe.

Underlying EPS of 6.9cps was a shade ahead of JPMe (6.8cps) and underlying

ROE of 9.8% beat JPMe (9.0%), helped by the buyback.

The interim dividend of 3.0cps (20% franked) was ahead of JPMe (2.0cps), and

AMP announced a second $150m on-market buyback, taking potential 2026

buybacks to $300m. They cited future capital flexibility (including review of

dividend policy).

Australia

Insurance and Diversified Financials

Siddharth Parameswaran AC

(61-2) 9003-8629

J.P. Morgan Securities Australia Limited

Tharan Jeyathasan

(61-2) 9003-6098

J.P. Morgan Securities Australia Limited

Rishi S Parihar

(91-22) 6157-3775

J.P. Morgan India Private Limited

AMP for 1H26 reported 1) Underlying NPAT of $174mn (JPMe $170.6mn); 2)

Reported Profit of $154mn (JPMe $154.1mn); 3) DPS (cps) of 3 (JPMe 2).

Outlook: CY26 outlook largely reiterated, with downgrade to Bank NIM to

~1.25% (from 1.25-1.30%; JPMe 1.28%) for CY26, reiterated margin guidance for

…