News: AMP UPDATE 1-AMP's profit falls on weakness in wealth management business

(Updates with details in paragraph 2,3 and 6)

Aug 10 (Reuters) - Australian wealth manager AMP (AMP) on Thursday posted a marginal fall in half-yearly profit, as higher earnings from its banking unit were offset by heightened market volatility that hurt its wealth management business.

Net interest margins at AMP bank was up seven basis points to 1.39% for the first half from 1.32% a year earlier.

The company logged net cash outflows of A$741 million, excluding pension payments, from the company's Platforms business, which was impacted due to prevailing macro-economic conditions, AMP said.

The company is in the midst of streamlining its operations to focus on its wealth management and banking arm, with the sale of its global investment managing unit AMP Capital's international and real estate and domestic infrastructure equity business expected to boost capital.

For the six months ended June 30, the 173-year-old firm reported an underlying net profit after tax of A$112 million ($73.15 million), compared with A$117 million a year earlier.

The company also declared an interim dividend of 2.5 Australian cents per share.

($1 = 1.5312 Australian dollars)