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AMP NZ financial services profit rises

NZ Newswire logoNZ Newswire 8/02/2017 Rebecca Howard

AMP's New Zealand financial services, the local unit of the Australian financial services firm, reported a higher underlying operating profit after tax although the parent reported a net loss.

New Zealand financial services reported an underlying operating profit after tax of $A145 ($NZ153m) million for 2016 versus $A141m in the prior year.

Its operating earnings increased 5 per cent to $A126m in 2016 from 2015 largely as a result of higher profit margins, partially offset by changes in the taxation of life insurance business in New Zealand that resulted in the loss of transitional tax relief from July 1, 2015.

As a result, the operating earnings do not include $A9m of transitional tax relief that was included in the prior year, it said.

Its profit margins increased 14 per cent to $A112m, largely from improved results in wealth management.

The company said its controllable costs decreased 4 per cent to $A80m as it remains focused on cost control, including business reorganisation.

Parent AMP Ltd meanwhile reported a net loss of $A344m for 2016 from a $A972 million profit the year before and announced an $A500m on-market share buyback beginning in the first quarter.

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