AMP share price marching higher as net outflows ebb

The AMP Ltd (ASX: AMP) share price is marching higher today, up 2.5% in late morning trade.

The diversified ASX financial share closed yesterday trading for $1.10. Shares are currently changing hands for $1.12 apiece.

Here’s what investors are considering today.

What did AMP report?

The AMP share price is in the green after the company released a first-quarter update on its cash flows and assets under management.

While AMP still saw net cash outflows of $600 million in Q1 2023, this was a 30% improvement on the $900 million outflows reported in Q1 2022. The wealth manager attributed the improvement to “further stabilisation of Master Trust outflows”.

Also on the positive side of the ledger, AMP’s loan book increased by $200 million to reach $24.2 billion. The company said it’s been seeing improving momentum in loan applications and growth.

And the company’s Australian Wealth Management (AWM) assets under management increased by $2 billion to hit $126.2 billion. AMP noted that positive investment markets had been partly offset by net cash outflows and pension payments.

Commenting on the results that look to be supporting the AMP share price today, CEO Alexis George said:

We continue to take an active approach to managing the bank’s loan book, being disciplined in our growth in a highly competitive market to maintain strong credit quality and margin. We are conscious of the impact of rising interest rates on customers and continue to focus on providing competitive loan and deposit rates.

George added that in New Zealand, “We continue to consolidate our strong position in the KiwiSaver market with increased inflows into AMP KiwiSaver.”

With the sale of the final AMP Capital business completed last month, George said AMP has sharpened its “focus on driving the performance of our banking and wealth management businesses”.

AMP share price snapshot

As you can see in the chart below, the AMP share price has recovered from a rough start to 2023 and is now up 4% since this time last year.

The post AMP share price marching higher as net outflows ebb appeared first on The Motley Fool Australia.

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More reading

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• Why has the AMP share price rocketed 11% in a month?
• Why did the AMP share price beat the ASX 200 in March?
• The first AMP dividend in over 2 years is being paid today. Here’s the lowdown
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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