Full year 2018 results, page-11

1)      Underlying NPAT of $680m, in line with our estimate and recent guidance;

2)      4cps final dividend, in line with our estimate and recent guidance;

3)      AMP has flagged increased controllable costs in FY19 of around $100m, to account for higher professional indemnity insurance, reallocation of ‘one-off’ costs to ongoing, and from cost inflation. We have been adamant for years that AMP has been shifting too much of its cost base to one-off expenses, and it has now made a more realistic adjustment as to the true underlying cost of the business;

4)      Guidance for the largest division, Australian Wealth Management, to experience -8bps of margin decline during the year, which is equivalent to -8.8%, on the back of MySuper, but also back book repricing. We still see more pain on this front;

5)      AMP hasn’t made any guidance suggestions relating to the Royal Commission, meaning there could still be some more paint to come, once legislation is passed;

6)      Net-flows finished the year at -$4.0 billion, worse than our -$3.8 billion estimate;

7)      Bank NIM falling, and guidance for it to keep falling;

8)      Life Insurance sale is delayed by 3 months, now scheduled for some time around September this year; and

9)      AMP Capital remains in net-outflow.