AMP CEO Outlines Strategic Pivot Toward Wealth Growth and AI Integration

AMP has unveiled a strategic roadmap focused on three core pillars: accelerating growth within its wealth businesses, maximizing the benefits of artificial intelligence, and maintaining a rigorous focus on organizational efficiency and capital allocation. The announcement comes as the company seeks to stabilize its retail banking operations. CEO Blair Vernon acknowledged that the return on capital for AMP Bank is currently below required levels, necessitating a medium-term strategy to rectify the imbalance. To address these banking inefficiencies, the firm intends to target lower-cost funding by increasing deposits through the AMP Bank GO platform. During this transition, the company plans to keep its existing loan book broadly steady to ensure stability. AMP Chair Mike Hirst noted that the company's share price has faced pressure since the announcement of full-year results, arguing that current valuations do not reflect the strong financial growth achieved in recent years. Hirst attributed this disconnect to external market factors, specifically the increased influence of high-frequency trading and passive investment strategies. Following the address, AMP shares were trading at A$1.36, marking a 4.20% increase.