AMP Ltd

AMP: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$2.34	Pnsfr	Tcksn

AMP: Market Undervaluing Potential Longer-Term Bank Margin Recovery

Shaun Ler

Nov 16, 2023

We trim our fair value estimate on no-moat AMP to AUD 1.30 per share from AUD 1.35 due to a slower-than-expected recovery in AMP Bank’s net interest margins. Price competition led to a lower NIM for 2023 than we anticipated. The outlook for NIM recovery beyond 2023 is also slower, differing from our earlier forecast for a faster rebound. AMP Bank is expected to contribute around 40% of AMP’s operating earnings over the five years to 2027.

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