Shares fall nearly 27% in worst session since May 2003
FY25 profit rises nearly 21%, in line with market estimates
Earnings for Platforms, Superannuation miss consensus
Adds analyst comment in paragraphs 5 and 8, background on CEO exit in 9
By Nikita Maria Jino, Roshan Thomas and Rajasik Mukherjee
Feb 12 (Reuters) - Australian wealth manager AMP AMP.AX posted annual profit in line with expectations on Thursday, but a weaker momentum in key platforms and superannuation divisions sent its shares tumbling nearly 27% in their worst day in more than two decades.
The platforms unit, which houses AMP's flagship North investment solutions platform, posted full-year underlying earnings of A$106 million ($75.41 million), 7% below the Visible Alpha consensus but higher than last year's A$97 million.
The superannuation and investments division's near 15% growth in annual profit also fell short of estimates by 7%.
AMP forecast platforms assets under management-based revenue margins of 40-41 basis points for fiscal 2026, lower than 42 bps in 2025, while margins at the superannuations division were expected to be 60-61 bps, below last year's 62 bps.
"Platforms and bank businesses both disappointed, with weaker-than-expected margins, profits missing guidance, and no fresh buyback to soften the blow," said Marc Jocum, Senior Product and Investment Strategist, Global X ETFs.
Shares of the 177-year-old money manager plunged as much as 31.2% to A$1.2, their weakest level since June 2025, before closing close 26.7% lower.
The stock marked its worst session since May 2003 and was among the worst performers on the ASX 200 benchmark index .AXJO, which gained 0.3%.
"The market was responding to a cluster of negatives landing at the same time. Investors were already digesting the earlier-announced CEO departure, and this result failed to stabilise confidence," said Jocum.
Last month, AMP named its finance chief Blair Vernon as CEO, replacing Alexis George, who will retire from her role at the end of March.
Robust cash flows into key divisions helped AMP report full-year underlying net profit after tax of A$285 million, in line with the Visible Alpha consensus estimate of A$285 million and nearly 21% higher than the previous year.
It declared a final dividend of 2 Australian cents per share, in line with guidance and topping last year's 1 Australian cent apiece.
($1 = 1.4057 Australian dollars)
(Reporting by Nikita Maria Jino, Roshan Thomas and Shruti Agarwal in Bengaluru; Editing by Alan Barona and Subhranshu Sahu)
((Shruti.Agarwal@thomsonreuters.com))