AMP's (ASX:AMP) fiscal first half results missed expectations as it was impacted by weaker-than-anticipated revenue margins in the superannuation and investments (S&I) division, said Jarden in a Friday note.
The company reported Thursday first-half earnings of AU$0.038 per share, unchanged from a year earlier. Analysts polled by Visible Alpha expected earnings of AU$0.0395.
Although the S&I weakness was partly balanced by a strong recovery in the net interest margin of the banking division but the division is unlikely to rebound in fiscal year 2025 as regulatory fee caps are unlikely to be lifted soon, the note added.
The research firm noted that the banking division exceeded expectations, delivering underlying net profit after tax that was 5.2% above consensus, aided by a 6 basis point rise in net interest margin to 1.3%, driven by fixed-to-variable mortgage transitions and improved term deposit pricing.
Jarden has maintained its neutral rating with a price target of AU$1.60, up from AU$1.55.
The company's shares rose nearly 7% to their highest since June 2022 in recent Friday trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.