AMP profit in line with forecasts

SYDNAY - AMP, Australia's biggest corporate pensions manager, said first-half underlying profit rose 7 percent on stronger fee income.

Underlying profit, which strips out the effect of investment market volatility, climbed to $A420 million ($NZ505.6 million) for the six months ended June 30 from $A392 million a year earlier.

Analysts, on average, had forecast an underlying profit of about $A420 million, according to a Reuters poll of seven analysts. Estimates ranged from $A391 million to $A457 million.

Net profit rose 6.8 percent to $A424 million.

AMP, which has the largest network of financial planners in Australia, competes in the local funds management industry against the big banks and boutique funds managers.

Australia has the world's fourth-largest pool of managed investment funds assets of about $A1 trillion. Pensions make up an estimated 70 to 80 percent of the local managed funds market.

Shares in AMP, which has flagged another capital return to shareholders in 2007, soared 24 percent over the January-June half against about a 6.5 percent rise in the broader market.
Reuters