Quick Read
- AMP Limited’s stock fell 29.8% to AUD 1.23 on February 12, 2026.
- This decline occurred despite a 21% increase in underlying net profit after tax to AUD 285 million for H2 2025.
- The company reported a 2.8% revenue growth and nearly 7% reduction in controllable costs.
- CEO Alexis George highlighted AMP’s strategic focus on growth, innovation, and AI integration.
- Investor concerns over future growth prospects were cited as the reason for the share price drop.
SYDNEY (Azat TV) – AMP Limited (ASX: AMP) saw its share price plummet by nearly 30% on Thursday, February 12, 2026, dropping to AUD 1.23, immediately following the announcement of a robust 21% increase in underlying net profit after tax for the second half of 2025. This unexpected market reaction, which occurred despite the financial services firm reporting strong operational performance, highlights persistent investor anxieties regarding AMP’s long-term growth trajectory and the broader competitive landscape.
Profit Surge Meets Share Price Decline
AMP Limited’s full-year 2025 results revealed an underlying net profit after tax of AUD 285 million, marking a significant 21% improvement. The company also reported a 2.8% rise in revenue and successfully reduced controllable costs by nearly 7%. Despite these positive financial indicators, the market responded with a sharp sell-off, with the stock declining 29.8% to AUD 1.23. This downturn reflected investor concerns over future growth prospects and the dynamic market environment, as noted by an InvestingPro analysis, which suggested AMP appeared undervalued based on its Fair Value assessment, trading at a P/E ratio of 13.42 despite strong profitability metrics.
During the earnings call, CEO Alexis George acknowledged the market’s negative reaction but defended the results as ‘credible,’ stating, ‘We’ve delivered what we said we would.’ She emphasized the company’s efforts over the past five years to simplify its portfolio, strengthen its balance sheet, return AUD 1.1 billion of capital to shareholders, and recommence dividends. The company also announced a AUD 0.02 per share dividend with 20% franking for the period.
AMP’s Strategic Pillars for Future Growth
Looking ahead, AMP Limited outlined a strategic focus on growth, innovation, and embracing change, including new business models, tools, and partnerships. Alexis George highlighted the company’s unique position, stating, ‘We are unique in having all the building blocks for making this happen.’ A key initiative is AMP Bank Go, which aims to achieve AUD 1 billion in deposits by FY26. The company is also heavily integrating artificial intelligence, with over 400 agents deployed across the organization and 95% of its workforce reportedly using AI daily.
AMP’s strategy also includes bolstering its digital banking capabilities, expanding its Simple Super and Boost offerings for retirement incomes, and supporting various forms of financial advice. The company has also made significant progress in resolving legacy issues, including the remaining matters from the Royal Commission, and has worked to restore its brand reputation to its highest level since 2008.
Financial Health Amidst Market Skepticism
Beyond the headline profit, AMP’s 2025 financial highlights included earnings per share rising over 25%, a cost-to-income ratio decrease of more than 6%, and an improved return on equity of 8%. Total assets under management increased by 9% to AUD 161.7 billion, with platforms’ net cash flows surging 85% to AUD 5.1 billion. These underlying metrics underscore the firm’s operational efficiencies and strong asset gathering capabilities.
Despite these robust figures, the market’s skepticism appears rooted in a broader assessment of risks and challenges. These include ongoing market volatility, intense competitive pressures within the wealth management and banking sectors, the evolving regulatory environment, macroeconomic factors such as interest rates and inflation, and the continuous need for technological advancements to maintain a competitive edge. The InvestingPro analysis, while noting the undervaluation, indicated that investors are likely weighing these external factors heavily against current performance.
The stark contrast between AMP’s strong financial performance and its significant stock decline underscores a broader market trend where investors prioritize perceived future growth potential and competitive positioning over current profitability, especially in rapidly evolving sectors like financial services.