Ann: AMP 24/2014 - Part 4 - Investor Report, page-2

IMO this is a good result based on the underlying operational figures. The net profit compared to same period last year is reduced due to the Business efficiency program costs which should be a one off and if successful then this line item will further improve profitability going forward. 16% increase in underlying profit, increased net inflows, 9% dividend improvement, cost/income ratio improvements, turn around in insurance business are all good lead indicators. Interestingly margins are under pressure in most of their areas so the benefits of AMP scale and cost management will help offset this. IMO the full year result will continue the improvement story with further EPS improvements and a better full year dividend. While there was an improvement in the retail bank loan book side of the business I would like to see them sell this business and concentrate on the wealth/asset management businesses. This could reduce capital requirements, free up costs and provide a capital return to share holders IMO.