AMP looks at capital management

AMP Ltd says it may undertake a further capital management initiative in 2007 in addition to an expected capital return next year.

AMP chief executive Andrew Mohl plans to announce details of the 2006 capital return when the financial services group reports its annual result in February.

That comes on top of the A$1 billion ($1.11 billion) that AMP handed to investors this year, in the form of a A$750 million capital return to shareholders and a A$265 million return to debt holders as it redeemed its income securities.

"We expect another major capital initiative in 2006 and quite possibly another capital initiative of a smaller size in 2007," Mr Mohl told the Merrill Lynch Australia Investment Conference in New York.

Mr Mohl said a capital return for 2006 was the preferred initiative, but he did not specify an amount.

"Our expectation would be that at the full year result in February we'll announce our plan to make another substantial capital return to shareholders subject to regulatory approval and passage at an AGM in May of 2006."

Mr Mohl also reaffirmed the group's expectation that operating margins in its AMP Financial Services and AMP Capital Investors divisions would grow by at least 15 per cent this year.

- AAP