AMP has reported an after-tax profit of $690 million for the year to December 31 – a performance that CEO Paul Batchelor is happy about. Despite the fact that it compares badly with a $1.15 billion profit for 2000, Mr Batchelor was at pains to point out it was achieved against severely depressed investment returns.

He was also able to reveal higher cash flows, a steady final dividend return to shareholders and greater resilience from core businesses.

The result includes an investment loss of $26 million on shareholder capital compared with a $617 million profit last year.

The sale of non-core assets including AMP/GIO General Insurance allowed AMP to use the resultant $2 billion in capital to buy UK funds manager Towry Law and Interactive Investor International.  The company also reduced debt and invested in core businesses in new and existing markets.

“We expect 2002 to be another tough year for global financial services and we are managing our businesses accordingly,” Mr Batchelor said. “But we are doing so without losing sight of our long-term goals. We have very strong existing businesses that provide the foundation for ongoing organic growth.

“Our primary focus in 2002 is to drive the short and medium-term profitability of these businesses and deliver increased value for shareholders over the long term.”