SYDNEY – [AAP] Wealth manager AMP Limited (ASX: AMP) has swung back to profit from a $344 million loss a year ago, following strong earnings momentum from its AMP Capital and AMP Bank businesses.

The company has reported a statutory net profit of $848 million, a year after recording its first loss since 2003 on the back of a restructure of its wealth protection arm undertaken to counter a downturn in the income protection business.

AMP's wealth protection business suffered an earnings loss of $415 million a year ago, following $485 million in capitalised losses from an operational "reset".

The losses weighed on the company's group underlying profit which slid to $486 million a year ago, from a $1.1 billion profit in the previous year.

On Thursday, AMP reported underlying profit--its preferred measure of performance--had risen to $1 billion from $486 million the previous year.

Chief executive Craig Meller said the company had met its targets in reducing costs, driving new revenue from its Advice and SMSF businesses and managing margin compression in its wealth management division.

"We've stabilised and reinsured our life insurance business and we've stepped up our international growth, particularly in AMP Capital," he said in a statement on Thursday.

"Overall, a solid result that shows the strong headway we're making in delivering our strategy."

Group revenue for the 12 months to December 31 grew 24 per cent to $18.4 billion, from $14.8 billion a year ago, while earnings rose to $1.1 billion, from $527 million.

AMP Capital and AMP Bank delivered the strongest earnings growth among the six divisions, up 8.3 per cent and 16.7 per cent, respectively, but the Australian wealth management segment contributed the most, despite growth slowing on the previous year.

Operating earnings in Australian wealth management were $391 million, 2.5 per cent lower than full-year 2016's $401 million.

AMP RETURNS TO PROFIT:

* Profit of $848m, vs $344m loss

* Revenue of $18.4bn, up from $14.8bn

* Final dividend of 14.5cps, 90pc franked, up from 14 cents

 

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