Wealth management giant AMP is determined to improve the quality of advice it gives consumers who remain wary of an industry publicly shamed for costing them millions with dodgy guidance.
Announcing a 33 per cent increase in first half net profit to $507 million, AMP acknowledged that it is working to restore trust in the financial advice profession in the wake of a scandal that led to the big banks forking out compensation and appearing before a Senate committee.
AMP is piloting what it says are new approaches to face-to-face advice and will launch a digital service to supplement this in the second half of the year.
Its financial advice arm was the biggest contributor to the group's improved profit, with the Australian wealth management business lifting operating earnings 13.1 per cent to $207 million.
"A package of measures to lift the quality of advice is underway alongside a new approach to advice being piloted with encouraging results from consumer testing," chief executive officer Craig Meller said.
AMP already announced that financial planners will have to complete post-graduate studies by 2019 and reduced upfront commissions on life insurance from July 1 this year.
Morningstar analyst David Ellis said it will take a while for the industry to rebuild trust with consumers.
"They're making all the right noises but it's a slower longer term process considering all the things that have gone across the industry in the last few years," Mr Ellis said.
Profit at AMP's Australian wealth protection division increased 8.8 per cent but the company said there was work to be done at a unit that includes the once ailing life insurance business.
Operating earnings at the unit were up 8.8 per cent at $99 million but the firm warned the environment "continues to be volatile".
AMP said policy lapses were now in line with best case estimates and should revert to a long-term rate of approximately 13.5 per cent by 2017.
"The wealth protection business continues to stabilise and is delivering improved results, however we have more to do," Mr Meller said.
"The continuing delivery of our strategy to be a more customer driven organisation and our business efficiency programs are on track."
AMP shares closed 11 cents lower at $6.17.
AMP AMPS UP PROFIT
* Net profit: up 33pct to $507m
* Cashflows: up 11pct to $1.9b
* Interim dividend: up 1.5 cents to 14 cents per share.
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