If EPS Growth Is Important To You, AMP (ASX:AMP) Presents An Opportunity

If you’re hunting for stocks with real, tangible earnings growth, AMP Limited (ASX:AMP) might be flying under your radar—but not for long. Let’s dig into why this Australian financial services giant is worth a close look, especially if you’re an investor who prioritizes EPS (Earnings Per Share) momentum.

The EPS Story: A 25% Jump in FY2024

AMP’s underlying EPS surged 25% to 9.0 cents per share in FY2024, driven by two key factors: improved earnings and share buybacks. This isn’t a one-time blip. The trend is clear: after years of restructuring and cost-cutting, AMP is finally delivering the kind of growth that moves the needle.

Why the EPS Surge Matters

1. Cost Discipline: AMP slashed controllable costs by 6.1% to $648 million in FY2024, meeting its targets. This freed up cash to return to shareholders—$1.1 billion in buybacks and dividends since August 2022.
2. Strong Cashflow Generators:
3. Its Platforms division (wealth management) saw net cashflows jump 97% to $2.8 billion, fueled by managed portfolios and retirement products.
4. Superannuation & Investments turned a corner, with net outflows dropping to $1.0 billion (down from $6.4 billion in FY2023) thanks to better retention and top-tier investment returns.
5. New Growth Engines:
6. The digital bank for small businesses and personal banking, launched in February 2025, already has 11,600 early sign-ups. This isn’t just a vanity metric—it’s proof customers are buying into AMP’s modernization push.
7. Retirement specialization is becoming a core focus, with tools like MyNorth Lifetime aiming to lock in long-term customer relationships.

The Risks? Yes, They’re There—But Manageable

• Banking Margin Pressure: AMP Bank’s net interest margin (NIM) dipped to 1.26% in FY2024, reflecting tough competition in Australia’s banking sector.
• Regulatory Hurdles: AMP is pushing for reforms to level the playing field for smaller banks, but progress is slow.

But here’s the kicker: the stock price has already priced in many of these concerns. After a 14.85% drop following February’s earnings (due to mixed results), AMP is trading at a P/E ratio of 10.5x—a bargain compared to its historical average of 12-14x.

What’s Next? Q2 2025 Results Could Be a Catalyst

The upcoming Q2 2025 results (due August 7, 2025) are critical. Analysts are forecasting an EPS of $0.05, a 25% increase from the same quarter in 2023. If AMP delivers, it could spark a rally—especially if the digital bank and Platforms division keep firing on all cylinders.

Final Verdict: A Buy for Growth-Seekers

AMP isn’t a “set it and forget it” stock. It’s a strategic play for investors who want exposure to a company that’s:
- Rebuilding its business post-restructuring, with EPS momentum to prove it.
- Betting big on digital innovation, which could unlock new revenue streams.
- Trading at a discount to its peers, with $1.5 billion in cash reserves to fuel growth or buybacks.

Bottom line: If you’re in it for the long game—and believe in AMP’s ability to turn its restructuring into sustained EPS growth—this could be a steal. Just keep an eye on the August earnings report.

Final Thought: In a market where too many companies talk growth but deliver little, AMP is proving the skeptics wrong—with cold, hard EPS numbers. For now, the math adds up.