AMP Ltd., the Australian pension provider, said full-year profit climbed 2.3 percent on tighter cost controls and a recovery in global markets.
Net income rose to A$704 million ($721 million) in the year to Dec. 31 from A$688 million in the year earlier, AMP said in a statement today. Underlying profit, which removes merger-related costs and some of the influence of market volatility, gained 5.1 percent to A$955 million.
Chief Executive Officer Craig Dunn has focused on reducing costs as Europe’s debt crisis eroded investor confidence. AMP shares have risen 13 percent this year while the benchmark S&P/ASX 200 Index has gained 9.7 percent.
AMP’s “repositioning for higher growth is delivering, with strong cost disciplines,” Daniel Toohey, analyst at Morgan Stanley (MS:US) said before the announcement. “We back AMP to deliver 3 percent cost savings, over and above its synergies and expect strong cost discipline.”
The company’s cost to income ratio was 47.3 percent in 2012, down from 47.9 percent in the prior year, AMP said.
To contact the reporter on this story: Narayanan Somasundaram in Sydney at firstname.lastname@example.org
To contact the editor responsible for this story: Andreea Papuc at email@example.com