AMP chief executive Blair Vernon says the business can keep growing its platform flows without sacrificing margin, because advisers are coming to North for its functionality rather than its price.
Net cashflows on the North platform grew 33 per cent to a record $3.1 billion for the six months to 30 June, 1H26 results released on Thursday to the ASX show, while the platform business lifted underlying net profit 15.1 per cent to $61 million and 74 net new advisers joined the platform.
Group underlying net profit after tax rose 33 per cent to $174 million, and AMP’s superannuation and investments division recorded its first positive half-year net cashflows since 2017 – $76 million, against outflows of $75 million a year earlier – off the back of top-quartile returns to members.
Asked how long AMP can grow its platform flows without giving up margin, Vernon tells Professional Planner this half demonstrated it can manage both.
“Flows were up 33 per cent on the prior period to a record $3.1 billion, and at the same time we managed margin to guidance,” Vernon says.
“From our point of view, that’s a really great outcome. We continue to work on margin management every day, and that’s an ongoing activity for us. But at the same time, growth is key – and the growth we’re seeing is coming from really engaged advisers who really value what North delivers.”
While the retail platform space has been the beneficiary of significant flows from industry funds, competition within it is also heating up. But Vernon says North’s edge doesn’t lie in the product alone.
“The edge that North has is actually the relationship it has with advisers,” Vernon says.
“The outflow… isn’t from a fund to a platform. It’s a member wanting to get advice and get assistance to navigate complexity. We’ve clearly positioned North as an absolute leader for advisers who are looking to serve the mass affluent, and we’re very clear about its retirement focus, whether it’s through product innovation or the functionality we deliver, because there’s so few advisers relative to the demand, that’s a real challenge. If we can play into that, and we are, it’s a positive for everyone.”
And while ASIC was recently critical of governance standards among platform trustees, Vernon says AMP is confident in its own practices.
“We’re always focused on governance, and we would always advocate for the highest possible standards across the sector,” Vernon says.
“We’re really confident about the work we’ve been doing in terms of platform governance, whether that’s investment governance, compliance or adviser monitoring, and I think our record speaks for itself. We’re clearly advocates of high and consistent standards across the sector, and the ongoing monitoring is important.”
AMP delivered its North Interactive functionality in the first half, and Vernon says the AI functionality it is now building into North will deliver “fundamental time saving” for advisers on top of what’s already there.
“That’s critical because they can see more clients, and we’re building it right into the heart of North,” Vernon says.
“We’ve got our engineers working every day flat out on functionality, which is designed in conjunction with advisers and delivered for their benefit.”
AI is also a big focus in AMP’s superannuation and investments business, Vernon says.
“We’re really seeing the benefits of AI in terms of product balance and life cycle. The functionality we’re shipping through the new portal and the app we’re about to go live with has benefited from a faster cycle time because we’re deploying AI tools and that’s allowing us to build more functionality faster, and at better quality.”
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