AMP (ASX:AMP) announced a significant shift in its financial reporting methodology ahead of its full-year results scheduled for Feb. 12.
Following an extensive "business simplification" program, the group is reallocating approximately $48 million in annual technology and property expenses from its corporate center directly to its individual business units.
While this structural change does not impact the group's total profit or controllable costs, it provides a more granular and accurate view of the actual operating costs for each division.
In a move to align with industry peers, AMP is also revising its cost-to-income ratio calculation.
The new methodology removes investment income from the equation, focusing strictly on controllable costs divided by gross profit.
The shift resulted in a restated FY24 CTI of 67.6%, up from the previously reported 63.8%.
The company expects FY25 costs to remain within its existing guidance, while projecting FY26 controllable costs to land between $630 million and $640 million.
This anticipated rise reflects a 3–4% inflationary environment and the capital required to scale AMP Bank GO, the group's digital-first banking platform.