Australia’s AMP sees profit surge as fund management unit receives ‘inquiries’

Adds details on AMP Capital Inquiries, Exits, Stocks

February 10 (Reuters)Australian Wealth Manager AMP Ltd AMP.AX posted a jump in its annual profit on Thursday and said it had received “requests” on its asset management arm, whose private markets business is expected to be spun off this year.

The company, which has been trying to recover from a series of scandals, said outflows from its flagship Australian wealth management arm slowed in the year to December.

The 172-year-old business recorded net cash outflows of A$5.2 billion ($3.73 billion), up from A$7.8 billion a year earlier.

AMP did not provide details of AMP Capital’s demands, but said it would consider any approach and that such interest was “not unusual at this stage in the process of preparing for the split”.

The company said AMP Capital’s private markets business would be called Collimate Capital after the spin-off, which was on track to complete in the first half of this year.

Its shares were 4% higher in early trade.

AMP Capital has reported annual net profit of A$154 million and manages assets of A$177.8 billion.

A strong performance from AMP Capital and some provision reversals lifted the parent company’s underlying profit to A$356 million from A$233 million a year earlier.

($1 = 1.3933 Australian dollars)

(Reporting by Harshita Swaminathan and Riya Sharma in Bengaluru, additional reporting by Nikhil Kurian Nainan; Editing by Krishna Chandra Eluri and Aditya Soni)

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