Q2 2026 AMP Ltd Earnings Call

August 6, 2026

Operator: Good day. Thank you for standing by. Welcome to AMP Half Year 2026 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Blair Vernon, Chief Executive Officer of AMP. Please go ahead.

Operator: Good day. Thank you for standing by. Welcome to AMP Half-Year 2026 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Blair Vernon, Chief Executive Officer of AMP. Please go ahead.

Speaker #1: Good morning, and thank you for standing by. Welcome to the AMP Half Year 2026 Results Conference Call. At this time, all participants are in a listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your first speaker today, Blair Vernon, Chief Executive Officer of AMP. Please go ahead.

Blair Vernon: Thank you. Welcome to the H1 2026 results briefing for AMP. My first as CEO. I am delighted to be joined today by our new CFO, Jackie Cleary. I would like to acknowledge the traditional custodians of the land upon which we meet today. Here at AMP in Sydney, that is the Gadigal people of the Eora Nation. I would like to pay my respects to elders past and present. I extend that respect to the traditional custodians of the lands on which all participants on this call are joining from today. I am going to kick things off with an overview of our H1 2026 results, also provide some brief context to our strategic focus and immediate priorities. Jackie will discuss the results in more detail, including business unit performance, key metrics, and our revised FY2026 guidance.

Speaker #2: Thank you. Welcome to the first half 2026 results briefing for AMP. My name is Alexis George, CEO. I'm delighted to be joined today by our new CFO, Jackie Cleary.

Speaker #2: I'd like to acknowledge the traditional custodians of the land upon which we meet today, here at AMP in Sydney. That is the Gadigal people of the Eora Nation, and I'd like to pay my respects to elders past and present.

Speaker #2: I extend that respect to the Traditional Custodians of the lands on which all participants on this call are joining from today. I'm going to kick things off with an overview of our first half 2026 results, and also provide some brief context to our strategic focus and immediate priorities.

Speaker #2: Jackie will then discuss the results in more detail, including business unit performance, key metrics, and a revised FY26 guidance. I will then conclude with a brief summary of our immediate priorities for the second half of '26.

Blair Vernon: I will conclude with a brief summary of our immediate priorities for the H2 2026. We will open to Q&A as usual. NPAT for the half is up 33% to AUD 174 million. A result that reflects the growing contribution of our China partnerships, which collectively delivered more than double the NPAT contribution when compared to the H1 2025. Notably, CLPC also lifted its dividend payout again compared to FY2025, up 41%. Statutory profit is up 57% to AUD 154 million, reflecting the continued simplification of our business and the removal of significant one-off items below the line. During the half, we returned more than AUD 200 million to shareholders through a mix of dividend and buybacks.

Speaker #2: We'll then open to Q&A as usual. Impact for the half is up 33% to $174 million—a result that reflects the growing contribution of our China partnerships, which collectively delivered more than double the impact contribution when compared to the first half of 2025.

Speaker #2: Notably, CLPC also lifted its dividend payout again in FY26 compared to FY25, up 41%. Statutory profit is up 57% to $154 million, reflecting the continued simplification of our business and the removal of significant one-off items below the line.

Speaker #2: During the half, we returned more than $200 million to shareholders through a mix of dividends and buybacks. Today, we announce a further on-market buyback program of another $150 million.

Blair Vernon: Today, we announce a further on-market buyback program of another AUD 150 million, reflecting the strength of our cash generation and capital realization strategy to benefit our shareholders. In addition to this new buyback, we are also announcing a AUD 0.03 interim dividend today. Platform's cash flows were over AUD 3 billion for the half. Our S&I business delivered a positive cash flow result for the first time in nearly a decade. Our overall AUM increased to over AUD 167 billion. Our key wealth operating units continue to deliver genuine momentum and operating leverage as we execute on our clear strategy to make a difference to retirement outcomes for everyday Australians and Kiwis. I want to briefly recap on our core strategic focus and the progress we have made against this thesis in the H1.

Speaker #2: Reflecting the strength of our cash generation and capital realisation strategy to benefit our shareholders. In addition to this new buyback, we are also announcing a 3 cent interim dividend today.

Speaker #2: Platform's cash flows were over $3 billion for the half, and our S&I business delivered a positive cash flow result for the first time in nearly a decade.

Speaker #2: Our overall AUM increased to over $167 billion. Our key wealth operating units continued to deliver genuine momentum and operating leverage, as we execute on our clear strategy to make a difference to retirement outcomes for everyday Australians and Kiwis.

Speaker #2: I want to briefly recap our core strategic focus and the progress we have made against this thesis in the first half. We've outlined a clear focus to organically grow our portfolio of wealth management businesses, given the attractive dynamics of these operations and our relative opportunity.

Blair Vernon: We've outlined a clear focus to organically grow our portfolio of wealth management businesses, given the attractive dynamics of these operations and our relative opportunity. We aim to deliver great retirement solutions to customers in each of these markets. At the same time, we are continuing to accelerate the transition of our AMP Bank GO solution and execute on our capital release plans within our banking business. We also continue to pursue the realization of non-strategic partnerships and minority interests as market opportunities present. The three jurisdictions where we have wealth exposure all share attractive demographic conditions, making saving for retirement a national priority. In Australia, we have long celebrated the accumulation settings that see a market with well over AUD 4 trillion in savings, and now a recognition that the shift to retirement incomes and wealth transfer is a significant latent opportunity.

Speaker #2: We aim to deliver great retirement solutions to customers in each of these markets. At the same time, we are continuing to accelerate the transition of our AMP Bank Go solution and execute on our capital release plans within our banking business.

Speaker #2: We also continue to pursue the realization of non-strategic partnerships and minority interests, as market opportunities present. The three jurisdictions where we have wealth exposure all share attractive demographic conditions, making saving for retirement a national priority.

Speaker #2: In Australia, we have long celebrated the accumulation settings that see a market with well over $4 trillion in savings. And now, there's recognition that the shift to retirement incomes and wealth transfer is a significant latent opportunity.

Speaker #2: In New Zealand, there is now a growing acknowledgement that the model of compulsory participation and increased contributions from the current voluntary 3.5% rate is key to future prosperity.

Blair Vernon: In New Zealand, there is now a growing acknowledgment that the model of compulsory participation and increased contributions from the current voluntary 3.5% rate is a key to future prosperity, creating a prospective fresh tailwind in this market. Our longstanding partnership in China operates in a market where 12% contributions are the norm in Pillar Two, with an addressable market of well over 100 million citizens. The Pillar Three opportunity, which is in its infancy, with an addressable market of over half a billion citizens, again, represents an ongoing positive growth opportunity in this market. Our 2026 priorities are set against a simple and clear focus on three thematics. Accelerating growth in our wealth businesses, increasing cash generation and returns to shareholders, and leveraging the opportunities from AI while simultaneously managing the rapidly emerging risks. H1 2026 saw continued positive momentum in our growth ambitions across wealth.

Speaker #2: Creating a prospective fresh tailwind in this market. Our long-standing partnership in China operates in a market where 12% contributions are the norm in pillar two.

Speaker #2: With an addressable market of well over 100 million citizens, the pillar three opportunity, which is in its infancy, with an addressable market of over half a billion citizens, again represents an ongoing positive growth opportunity in this market.

Speaker #2: Our 2026 priorities are set against a simple and clear focus on three themes: accelerating growth in our wealth businesses, increasing cash generation and returns to shareholders, and leveraging the opportunities from AI while simultaneously managing the rapidly emerging risks.

Speaker #2: The first half of '26 saw continued positive momentum in our growth ambitions across Wealth. Our Lifetime Solutions reached new milestones across both our North platform and our AMP Super business, with collectively more than $21 billion invested in these solutions.

Blair Vernon: Our lifetime solutions reached new milestones across both our North and our AMP Super, with collectively more than AUD 21 billion invested in these solutions. Our AMP Super delivered top quartile returns for members, cementing our superior returns relative to most funds across one, three, five, and seven years. Our North road shows in the first half showcased the new North Interactive Wealth Portal to more than 500 advisers and revealed the powerful AI workbench we are deploying to unlock adviser efficiency and productivity, already saving up to 2 hours per client review. That translates directly into advisers having more capacity to see more clients. In New Zealand, we continue to deliver growth and cash flows with great underlying economics, while our longstanding partnerships in China equally show a growth curve and operating leverage, which is compelling.

Speaker #2: Our AMP Super business delivered top quartile returns for members, cementing our superior performance relative to most funds across 1, 3, 5, and 7 years.

Speaker #2: Our North Roadshows in the first half showcased the new North Interactive Wealth Portal to more than 500 advisors and revealed the powerful AI workbench we are deploying to unlock advisor efficiency and productivity.

Speaker #2: We're already saving up to two hours per client review. That translates directly into advisors having more capacity to see more clients. In New Zealand, we continue to deliver growth and cash flows with great underlying economics.

Speaker #2: While our long-standing partnerships in China equally show a growth curve and operating leverage, which is compelling. Increasing our cash generation and creating the capacity to maximize returns to shareholders is central to our growth strategy.

Blair Vernon: Increasing our cash generation and creating the capacity to maximize returns to shareholders is central to our growth strategy. In H1, we increased underlying NPAT and also reduced below-the-line items, boosting statutory NPAT significantly compared to H1 2025. As we drive the transition of deposits to our new GO platform in the bank, we anticipate emerging cost efficiencies alongside the opportunity to accelerate capital release from the bank itself. Continued utilization of DTAs added to our performance metrics, allowing us to return over AUD 200 million to shareholders in the half. Like all businesses, we're balancing both the opportunities and the risks from AI, and through H1, we sharpened our focus on both offense and defense.

Speaker #2: In the first half, we increased underlying impact and also reduced below-the-line items, boosting statutory impact significantly compared to 1H25. As we drive the transition of deposits to our new Go platform in the bank, we anticipate emerging cost efficiencies.

Speaker #2: Alongside the opportunity to accelerate capital release from the bank itself, continued utilization of DTAs added to our performance metrics, allowing us to return over $200 million to shareholders in the half.

Speaker #2: Like all businesses, we're balancing both the opportunities and the risks from AI, and through the first half, we sharpened our focus on both offense and defense.

Speaker #2: We see significant opportunities in North as we build and deploy a comprehensive set of AI capabilities designed specifically for advisors operating in the Australian marketplace.

Speaker #2: To drive efficiency that will make a difference for them and their practices, we're already seeing benefits from product development lifecycle management. Our ambition in the second half is to advance our end-to-end simplification of corporate functions, leveraging AI rather than simply deploying agents to replicate current workflows.

Blair Vernon: We're already seeing benefits from product development lifecycle management. Our ambition in H2 is to advance our end-to-end simplification of corporate functions, leveraging AI, rather than simply deploying agents to replicate current workflows. While we see clear benefits, we're also expanding our defensive posture, especially in cyber defense, tech FinOps, and also governance and training, all of which demand concurrent investment and are being managed inside our guided cost envelope.

Speaker #2: While we see clear benefits, we're also expanding our defensive posture, especially in cyber defense, tech FinOps, and also governance and training—all of which demand concurrent investment and are being managed inside our guided cost envelope.

Speaker #2: Our ability to pursue growth confidently is built on a foundation of carefully executed transformation over the past few years, where our investments have been directed towards simplifying the business, resolving legacy matters, and improving our investment spend to build operating leverage in our wealth businesses.

Blair Vernon: Our ability to pursue growth confidently is built on a foundation of carefully executed transformation over the past few years. Our investments have been directed towards simplifying the business, resolving legacy matters, and improving our investment spend to build operating leverage in our wealth businesses. That capability is predominantly directed at delivering retirement solutions for clients in each of our target geographies, which all continue to benefit from enhanced public policy developments in the main. We have a portfolio of wealth businesses with strong cash generation profiles. We see significant further capital release opportunities in our banking business and across non-strategic assets, presenting attractive dividend and buyback prospects as we look forward. I'll now hand to Jackie, who will walk you through the results in some more detail.

Speaker #2: That capability is predominantly directed at delivering retirement solutions for clients in each of our target geographies, which all continue to benefit from enhanced public policy developments, in the main.

Speaker #2: We have a portfolio of wealth businesses with strong cash generation profiles, and we see significant further capital release opportunities in our banking business and across non-strategic assets.

Speaker #2: Presenting attractive dividend and buyback prospects as we look forward. I'll now hand over to Jackie, who will walk you through the results in some more detail.

Speaker #1: Thank you, Blair, and good morning, everyone. I'll now take you through AMP Group's financial performance for the first half. Underlying NPAT increased 33% to $174 million.

Jackie Cleary: Thank you, Blair. Good morning, everyone. I'll now take you through AMP Group's financial performance for H1. Underlying NPAT increased 33% to AUD 174 million. Importantly, growth was broad-based, with our wealth businesses contributing more than 75% of underlying NPAT. Statutory NPAT increased 57% to AUD 154 million, driven by lower litigation, remediation, and business simplification related costs. Revenue grew faster than costs in H1, with revenue up 6%, while controllable costs were up 4%. As a result, the group EBIT margin improved by 2.5 percentage points to 30.7%. The cost-to-income ratio improved to 60.5%. Return on equity increased to 9.8%. Earnings per share increased 33%, reflecting stronger earnings and ongoing capital management. Across the group, the business generated AUD 236 million of surplus capital during H1.

Speaker #1: Importantly, growth was broad-based, with our wealth businesses contributing more than 75% of underlying impact. Statutory impact increased 57% to $154 million, driven by lower litigation, remediation, and business simplification-related costs.

Speaker #1: Revenue grew faster than costs in the half, with revenue up 6%, while controllable costs were up 4%. As a result, the group EBIT margin improved by 2.5 percentage points to 30.7%, and the cost-to-income ratio improved to 60.5%.

Speaker #1: Return on equity increased to 9.8%, and earnings per share increased 33%, reflecting stronger earnings and ongoing capital management. Across the group, the business generated $236 million of surplus capital during the half.

Speaker #1: Of that, we returned $201 million, or 85% of that surplus capital, to shareholders through both dividends and buybacks, while maintaining a strong capital position.

Jackie Cleary: Of that, we returned AUD 201 million or 85% of that surplus capital to shareholders through both dividends and buybacks while maintaining a strong capital position. We also utilized a further AUD 56 million of deferred tax assets, reducing the remaining on-balance sheet net DTA balance to AUD 418 million. The combination of capital generation and DTA utilization continues to support shareholder returns and capital flexibility. The growing contribution from our capital-light wealth businesses support a continued capital generation, which increased group surplus capital to AUD 322 million. That has enabled today's announcement of a further AUD 150 million of an on-market share buybacks alongside an interim dividend of AUD 0.03 per share, 20% franked, which is up from previous guidance of AUD 0.02 per share.

Speaker #1: We also utilized a further $56 million of deferred tax assets, reducing the remaining on-balance sheet net DTA balance to $418 million. The combination of capital generation and DTA utilization continues to support shareholder returns and capital flexibility.

Speaker #1: The growing contribution from our capital-light wealth businesses supported continued capital generation, which increased Group surplus capital to $322 million. That has enabled today's announcement of a further $150 million of an on-market share buyback, alongside an interim dividend of 3 cents per share, 20% franked, which is up from previous guidance of 2 cents per share.

Speaker #1: Our focus remains on disciplined capital allocation, balancing investment, capital returns, and maintaining a strong balance sheet. While the half included some period-specific items, the key feature of our result was stronger earnings from AMP's wealth and retirement businesses.

Jackie Cleary: While the half included some period-specific items, the key feature of our result was stronger earnings from AMP's wealth and retirement businesses. Platforms and Super & Investments delivered higher profits and expanded EBIT margins as assets and cash flows grew. China partnerships contributed AUD 56 million, more than double the prior period. Together, these businesses contributed more than 85% of group underlying NPAT. We will continue to realize capital from non-strategic partnerships where opportunities arise. Finally, AMP Bank's results reflect investment in scaling AMP Bank GO and capital release transactions. Each of our wealth businesses contributed positively from prior half. Platforms delivered record net cash flows up 33%. Super & Investments recorded its first positive net cash flow since 2017. New Zealand continued to perform strongly, up 20%, while China Pension AUM continued to grow, up 9% on the half. Turning now to the performance by business units.

Speaker #1: Platforms and Super and Investments delivered higher profits and expanded EBIT margins, as assets and cash flows grew. China partnerships contributed $56 million, more than double the prior period.

Speaker #1: Together, these businesses contributed more than 85% of group underlying impact. We will continue to realize capital from non-strategic partnerships where opportunities arise. And finally, AMP Bank's results reflect investment in scaling AMP Bank Go and capital release transactions.

Speaker #1: Each of our wealth businesses contributed positively from the prior half. Platforms delivered record net cash flows, up 33%. Super and Investments recorded its first positive net cash flow for a half-year since 2017.

Speaker #1: New Zealand continued to perform strongly, up 20%, while China pension AUM continued to grow, up 9% on the half. Turning now to the performance by business units.

Speaker #1: Platforms delivered strong growth, with underlying impact increasing 15% to 61 million. Record net cash flows of $3.1 billion demonstrate the continued momentum in the business.

Jackie Cleary: Platforms delivered strong growth, with underlying NPAT increasing 15% to AUD 61 million. Record net cash flows of AUD 3.1 billion demonstrate the continued momentum in the business. Revenue grew faster than costs in the half, with revenue up 6%, controllable costs up 2%, and EBIT up 18%, demonstrating operating leverage. With scale benefits emerging, the cost-to-income ratio improved to 53.5%, and return on tangible equity increased to 32.9%. Let me spend a moment on the underlying drivers of that performance. In the 2025 NMG Australian Wealth Adviser Study, North was rated the number 1 platform across a number of categories, including adviser proposition, retirement, reporting, price competitiveness. We were joint first in digital experience and rated number 2 for technology. Our AUM is currently 80% weighted to superannuation and retirement, where recent policy changes favor wealth creation via super, which we are well-positioned for, creating stability and consistency.

Speaker #1: Revenue grew faster than costs in the half, with revenue up 6%, controllable costs up 2.5%, and EBIT up 18%, demonstrating operating leverage. With scale benefits emerging, the cost-to-income ratio improved to 53.5%, and return on tangible equity increased to 32.9%.

Speaker #1: Let me spend a moment on the underlying drivers of that performance. In the 2025 NMG Australian Wealth Advisor Study, North was rated the number one platform across a number of categories.

Speaker #1: Including advisor proposition, retirement, reporting, and price competitiveness, we were joint first in digital experience and rated number two for technology. Our AUM is currently 80% weighted to superannuation and retirement, where recent policy changes favor wealth creation via super, which we are well positioned for.

Speaker #1: Creating stability and consistency. During the half, we added 74 net new advisors to North, with fewer greater than $1 million, and signed 38 new AFSL agreements.

Jackie Cleary: During the half, we added 74 net new advisers to North with FUA greater than AUD 1 million, and signed 38 new AFSL agreements. MyNorth Lifetime continued to gain traction, growing to AUD 1.2 billion. Revenue margins remained stable at 41 basis points, consistent with H2 2025, reflecting ongoing management actions. EBIT margin grew from 39% in FY25 to 42% this half. Closing AUM reached AUD 92.7 billion, with a diversified mix and continued strong growth in managed portfolios. Super & Investments' underlying NPAT increased over 18% to AUD 32 million. Top quartile investment returns for members assisted with net cash flows turning positive for the first time since 2017. Revenue grew faster than costs in the half, with revenue up 5%, controllable costs up 1%, and EBIT up 21%, demonstrating operating leverage.

Speaker #1: MyNorth lifetime continued to gain traction, growing to $1.2 billion. Revenue margins remained stable at 41 basis points, consistent with the second half of 2025, reflecting ongoing management actions.

Speaker #1: EBIT margin grew from 39% in FY25 to 42% this half. Closing AUM reached $92.7 billion, with a diversified mix and continued strong growth in managed portfolios.

Speaker #1: Super and investments underlying impact increased over 18% to 32 million. Top quartile investment returns for members assisted with net cash flows turning positive for the first time since 2017.

Speaker #1: Revenue grew faster than costs in the half, with revenue up 5%, controllable costs up 1%, and EBIT up 21%, demonstrating operating leverage. The cost-to-income ratio has improved by 3.6 percentage points, and we see opportunity for further improvement given we have modernized the technology that underpins the super business.

Jackie Cleary: The cost-to-income ratio has improved by 3.6 percentage points, and we see opportunity for further improvement given we have modernized the technology that underpins the Super business. Finally, return on tangible equity increased by 3 percentage points to 19.9%. AUM-based revenue margins remained stable at 61 basis points, consistent with H2 2025. EBIT margin increased to 23%, demonstrating improving scale economics. Closing AUM reached AUD 62.6 billion, with a diversified mix and continued growth and employee MySuper. Now on to New Zealand. New Zealand Wealth delivered a resilient result. Underlying NPAT was NZD 18 million, down 5% in Australian dollar terms, but up 5% in local currency. Net cash flows increased almost 20% to NZD 116 million, driven by KiwiSaver inflows and lower outflows. Cost discipline remains strong, with a cost-to-income ratio of 39%. Now on to partnerships. I'll come back to China shortly.

Speaker #1: Finally, return on tangible equity increased by 3 percentage points to 19.9%. AUM-based revenue margins remained stable at 61 basis points, consistent with the second half of 2025.

Speaker #1: EBIT margin increased to 23%, demonstrating improving scale economics. Closing AUM reached $62.6 billion, with a diversified mix and continued growth, and employee MySuper. Now, on to New Zealand.

Speaker #1: New Zealand Wealth delivered a resilient result. Underlying impact was $18 million, down 5% in Australian dollar terms but up 5% in local currency. Net cash flows increased almost 20% to $116 million, driven by KiwiSaver inflows and lower outflows.

Speaker #1: Cost discipline remained strong, with a cost-to-income ratio of 39%. Now, on to partnerships. I'll come back to China shortly. Other partnerships benefited from $18 million pre-tax carried interest from DigitalBridge, which we announced last month.

Jackie Cleary: Other partnerships benefited from AUD 18 million pre-tax carried interest from DigitalBridge, which we announced last month. This is largely offset by downward revisions in sponsor investments. Investment income increased on higher average cash balances and favorable rates. Lower interest expense followed the repayment of our AUD 275 million AT1 notes late last year. Non-strategic assets remain a source of potential capital realization over time. Our China partnerships continue to build momentum and are a meaningful contributor to AMP's earnings. China Life Pension Company remains the largest participant in the Pillar two market for trustee services, with around 30% market share. For AMP, this is a capital-like business with growing earnings and cash returns. H1 contributions more than doubled this past year to AUD 56 million. CLPC and CLAP now have dividend payout ratios of 41% and 40% respectively.

Speaker #1: This was largely offset by downward revisions in sponsor investments. Investment income increased, on higher average cash balances and favorable rates. Lower interest expense followed the repayment of our $275 million 8.1 notes late last year.

Speaker #1: Non-strategic assets remain a source of potential capital realization over time. Our China partnerships continue to build momentum and are a meaningful contributor to AMP's earnings.

Speaker #1: China Life Pension Company remains the largest participant in the Pillar 2 market for trustee services, with around 30% market share. For AMP, this is a capital-like business with growing earnings and cash returns.

Speaker #1: First half contributions more than doubled this past year to $56 million. CLPC and CLAB now have dividend payout ratios of 41% and 40%, respectively.

Speaker #1: Growth in AUM and improved efficiency increased our annualized return on investment to 16%. This means AMP is realizing value through earnings and dividends, not just growth in carrying value.

Jackie Cleary: Growth in AUM and improved efficiency increased our annualized return on investment to 16%. This means AMP is realizing value through earnings and dividends, not just growth and carrying value. Let me spend a moment on the underlying drivers of that performance. At CLPC, pension AUM has grown at a 12% CAGR since 2021 to CNY 2.6 trillion. Over the past two years, the cost-to-income ratio improved from 55% to 45%, while the dividend payout ratio has increased from 30% to 41%. Growth continues to be supported by ongoing pension reform, which is expanding participation both across workplace and personal retirement savings. At CLAP, AUM has grown to more than CNY 400 billion, supported by strong investment capabilities and extensive distribution, reaching more than 75 million retail customers and 95,000 institutional clients. These businesses continue to grow at scale while generating increasing cash returns.

Speaker #1: Let me spend a moment on the underlying drivers of that performance. At CLPC, pension AUM has grown at a 12% CAGR since 2021, to a near $2.6 trillion.

Speaker #1: Over the past two years, the cost-to-income ratio improved from 55% to 45%, while the dividend payout ratio has increased from 30% to 41%.

Speaker #1: Growth continues to be supported by ongoing pension reform, which is expanding participation both across workplace and personal retirement savings. At CLAB, AUM has grown to more than $400 billion, supported by strong investment capabilities and extensive distribution, reaching more than 75 million retail customers and 95,000 institutional clients.

Speaker #1: These businesses continue to grow at scale, while generating increasing cash returns. At AMP Bank, our focus remains on improving the funding mix through AMP Bank GO and increasing capital efficiency.

Jackie Cleary: At AMP Bank, our focus remains on improving the funding mix through AMP Bank GO and increasing capital efficiency. Returns remain below where we want them to be, so we're prioritizing these actions ahead of balance sheet volume growth. AMP Bank GO deposits increased to AUD 1.7 billion, 70% of which are new customers. We closed the legacy deposit platform to new business this H1 to realize future cost synergies. We're seeing the first benefits in funding costs, although AMP Bank GO remains a relatively small part of total funding today. Mortgage growth remained disciplined, reflecting our focus on risk-adjusted returns and margin rather than volume. NIM was broadly stable to year-end at 1.25%, with funding improvements largely offset by securitizations and balance sheet optimization. You can see the NIM bridge in the appendix for further details.

Speaker #1: Returns remain below where we want them to be, so we're prioritizing these actions ahead of balance sheet volume growth. AMP Bank GO deposits increased to $1.7 billion, 70% of which are new customers.

Speaker #1: And we closed the legacy deposit platform to new business this half to realize future cost synergies. We're seeing the first benefits in funding costs, although AMP Bank Go remains a relatively small part of total funding today.

Speaker #1: Mortgage growth remained disciplined, reflecting our focus on risk-adjusted returns and margin rather than volume. NIMB was broadly stable to year-end at 1.25%, with funding improvements largely offset by securitization and balance sheet optimization.

Speaker #1: You can see the NIMBY Bridge in the appendix for further details. Our focus remains on execution, growing AMP Bank GO deposits, simplifying the operating model to realize cost savings, and further improving capital efficiency.

Jackie Cleary: Our focus remains on execution, growing AMP Bank GO deposits, simplifying the operating model to realize cost savings, and further improving capital efficiency. This page demonstrates the progress we're making on improving capital efficiency at AMP Bank. While the loan book was broadly stable, risk-weighted assets reduced, improving the capital efficiency and increasing the CET1 surplus to AUD 89 million above our 10.5% target midpoint. Importantly, our objective is not simply to accumulate surplus capital at the bank, it's to improve capital efficiency within the bank, while also increasing flexibility in how capital is allocated across the group. While there is more work to do, we continue to see opportunities to improve capital efficiency, and we will continue to evaluate all capital management options through a shareholder value lens. Turning to FY2026 guidance.

Speaker #1: This page demonstrates the progress we're making on improving capital efficiency at AMP Bank. While the loan book was broadly stable, risk-weighted assets reduced. Improving the capital efficiency and increasing the CET1 surplus to $89 million, above our 10.5% target midpoint.

Speaker #1: Importantly, our objective is not simply to accumulate surplus capital at the bank; it's to improve capital efficiency within the bank, while also increasing flexibility in how capital is allocated across the group.

Speaker #1: While there is more work to do, we continue to see opportunities to improve capital efficiency, and we will continue to evaluate all capital management options through a shareholder value lens.

Speaker #1: Turning to FY26 guidance, our focus remains on the key drivers of sustainable earnings growth, which are net cash flows, operating leverage, and capital generation.

Jackie Cleary: Our focus remains on the key drivers of sustainable earnings growth, which are net cash flows, operating leverage, and capital generation. In Wealth, our focus remains on growing AUM while maintaining disciplined margins, which are consistent with our prior guidance. In AMP Bank, the focus is on execution, growing AMP Bank GO deposits, simplifying the operating model to realize cost savings, and improving capital efficiency. We expect these actions will continue to put pressure on earnings in the near term, similar to the H1, with NIM expected to remain broadly stable at 1.25%. In Partnerships, we continue to see strong growth in AUM and cash returns. As a result, we're increasing guidance to an annualized 12% to 15% ROI across the portfolio. Controllable costs are expected to be in line with prior guidance.

Speaker #1: In Wealth, our focus remains on growing AUM while maintaining disciplined margins that are consistent with our prior guidance. In AMP Bank, the focus is on execution—growing AMP Bank GO deposits, simplifying the operating model to realize cost savings, and improving capital efficiency.

Speaker #1: We expect these actions will continue to put pressure on earnings in the near term, similar to the first half, with NIM being expected to remain broadly stable at 1.25%.

Speaker #1: In Partnerships, we continue to see strong growth in AUM and cash returns. As a result, we're increasing guidance to an annualized 12% to 15% return on investment across the portfolio.

Speaker #1: Controllable costs are expected to be in line with prior guidance. Today's additional buyback and dividend take the FY26 pro forma capital returns to $425 million.

Jackie Cleary: Today's additional buyback and dividend take the FY2026 pro forma capital returns to AUD 425 million. The board will review the final dividend at FY2026. Across the group, we remain disciplined on costs and capital allocation, with a continued focus on growing higher quality capital efficient earnings. I will turn it back to Blair.

Speaker #1: The board will review the final dividend at FY26. Across the group, we remain disciplined on costs and capital allocation, with a continued focus on growing higher quality, capital-efficient earnings.

Speaker #1: Now, I will turn it back to Blair.

Speaker #2: Thanks, Jackie. I want to wrap up with a brief praise of our key priorities through the second half, which are hopefully unsurprising, in that we are aiming to do simply more of the same.

Blair Vernon: Thanks, Jacqui. I want to wrap up with a brief precis of our key priorities through the H2, which are hopefully unsurprising in that we are aiming to do simply more of the same. We plan to continue to extend our innovation in retirement and leverage the clear momentum we have. That includes our expanded sales capability, which we are continuing to invest in. We're excited about the imminent launch of AI Implement in North that will deliver another significant efficiency gain for advisers and their practices in client interactions. We are well advanced on the rollout of brand new digital capabilities for our AMP Super members, including an entirely new app, which will complement our award-winning digital advice capability. We will continue our capital release program in AMP Bank and also accelerate our efficiency program as we scale, go, and reduce costs in the rest of the bank.

Speaker #2: We plan to continue to extend our innovation in retirement and leverage the clear momentum we have. That includes our expanded sales capability, which we are continuing to invest in.

Speaker #2: We're excited about the imminent launch of AI Implement in North that will deliver another significant efficiency gain for advisors and their practices in client interactions.

Speaker #2: We are well advanced on the rollout of brand new digital capabilities for our AMP Super members, including an entirely new app, which will complement our award-winning digital advice capability.

Speaker #2: We will continue our capital release program in AMP Bank and also accelerate our efficiency program as we scale GO and reduce costs in the rest of the bank.

Speaker #2: All of this contributes to a growing capacity to return further dividends and capital to shareholders. While we are seeing broad efficiency gains internally as we deploy more agents across the whole of the enterprise, we're also continuing to invest proactively in risk management.

Blair Vernon: All of which contributes to a growing capacity to return further dividends and capital to shareholders. While we're seeing broad efficiency gains internally as we deploy more agents across the whole of the enterprise, we're also continuing to invest proactively in risk management, especially in the areas of cyber defenses, but also to ensure we have tight financial controls across our entire AI estate. Through the H2, we're kicking off a broader review to ensure AI deployment can yield sustainable efficiencies that drop to the bottom line in future periods. That wraps up our summary of the H1 results. We'll now open it to Q&A.

Speaker #2: Especially in the areas of cyber defenses, but also to ensure we have tight financial controls across our entire AI estate. Through the second half, we're kicking off a broader review to ensure AI deployment can yield sustainable efficiencies that drop to the bottom line in future periods.

Speaker #2: That wraps up our summary of the first half results. We'll now open it to Q&A.

Speaker #3: To ask a question now, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: To ask a question now, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. A moment for our first question. Our first question comes from the line of Simon Fitzgerald from Jefferies. Please ask your question, Simon. Your line is open.

Speaker #3: We'll pause for our first question. Our first question comes from the line of Simon Fitzgerald from Jefferies. Please ask your question, Simon. Your line is open.

Speaker #4: Hi there, and thank you for taking my questions. I've got two I might direct to Jackie, if I could, please. Just firstly, on the chart and partnerships—obviously experiencing a really decent shift in momentum there.

Simon Fitzgerald: Hi there, thank you for taking my questions. I've got two. I might direct those to Jackie, if I could please. Just firstly, on the partnerships, obviously experiencing a really decent shift in momentum there, and now a meaningful component of group earnings. H1 2026, there's been an acceleration again, up 107%. I was just wanting to see if you could outline if there was anything sort of unusual or one-off in nature, or anything sort of less than usual in that result, or was it mainly sort of operational driving that?

Speaker #4: And now, a meaningful component of group earnings—first off, Q2 '26—there's been an acceleration again, up 107%. I was just wanting to see if you could outline if there was anything sort of unusual or one-off in nature, or anything sort of less than usual in that result.

Speaker #4: Or is it mainly, sort of, operational driving that?

Speaker #1: Thanks, Simon. I certainly don't see anything that's one-off, but why don't I just turn it to Blair to kind of directly answer that?

Jackie Cleary: Thanks, Simon. I certainly don't see anything as one-off, why don't I just turn it to Blair to directly answer that?

Speaker #2: Yeah, Dave Audin for Jackie. So it's—she has 14 days to observe their detail. But no, I mean, as Jackie said in the presentation, that growth is really operating leverage.

Blair Vernon: Yeah.

Simon Fitzgerald: Sure.

Blair Vernon: Day 14 for Jackie.

Jackie Cleary: Thanks, Simon.

Blair Vernon: No, as Jacqui said in the presentation, that growth is really operating leverage. The cost to income fall in the last two years of 55% to 45% reflects that leverage, and you can see the AUM growth. That AUM growth is particularly driven out of pillar 2, as we've said consistently for some time. That continues to essentially mirror the contribution rate of Australia, but it's clearly a massively larger addressable market. Pillar 3 remains that growth opportunity, but it's in its infancy. We don't see one-offs. We just see a continuation of growth.

Speaker #2: The cost-to-income ratio fell in the last two years from 55 to 45, reflecting that leverage. And you can see the AUM growth. That AUM growth is particularly driven out of pillar two, as we've said consistently for some time.

Speaker #2: And that continues to essentially mirror the contribution rate of Australia, but it's clearly a massively larger addressable market. Pillar three remains that growth opportunity.

Speaker #2: But it's in its infancy, and so we don't see one-offs; we just see a continuation of growth.

Speaker #4: Yeah, good, fair. And then just on the bank with the securitization program, I think I can see there was $2.3 billion of securitization activity.

Simon Fitzgerald: Yeah. Good fit. Just on the bank with the securitization program, I think I can see that there's AUD 2.3 billion in securitization activity. I think that's an AUD 1.4 billion net increase from FY25 to H1 2026. Just, how should we think about that in terms of a level of capital release? I've generally sort of thought about this in the past as, say, AUD 1 billion for securitization equates to around about AUD 30 to 50 million of read-up capital. Is that the right way to think about it? Then maybe you can sort of touch on how much is sort of in your public trust and what sort of mechanisms you're using through sort of private spheres in terms of securitization there.

Speaker #4: I think that's a $1.4 billion net increase from FY25 to the first half of '26. But just how should we think about that in terms of the level of capital release? We've generally sort of thought about this in the past as, say, $1 billion of securitization equating to around $30–$50 million of freed-up capital.

Speaker #4: Is that the right way to think about it? And then maybe you can sort of touch on how much is sort of in your public trust and what sort of mechanisms you're using through sort of private spheres in terms of securitization there.

Speaker #2: Yeah. You go, Jackie.

Blair Vernon: Yeah.

Jackie Cleary: Yeah. Thanks, Simon.

Blair Vernon: You go, Jackie.

Speaker #1: I'll take that one. So, in the half, we did $2.3 billion. In securitization-type activities, $1 billion of that was in public RMBS. We had $1.1 billion in our warehouse, which is our warehouse for capital release.

Jackie Cleary: I'll take that one. In H1, we did AUD 2.3 billion in securitization type activities. AUD 1 billion of that was in public RMBS. We had AUD 1.1 billion in our warehouse, which is our warehouse for capital release. There was additional, approximately AUD 200 million, in kind of top ups to that warehouse during H1. Some of which was actually quite late in H1, which you might have seen in AMP Bank's results in terms of elevated LCR and CET1 ratios.

Speaker #1: And there was an additional approximately $200 million in top-ups to that warehouse during the half, some of which was actually quite late in the half.

Speaker #1: Which you might have seen in the bank's results in terms of elevated LCR and CET1 ratios. So that's the kind of breakdown across public versus the warehouse.

Jackie Cleary: That's the kind of breakdown across public versus the warehouse.

Speaker #1: To the first part of your question, I think it's broadly in that range. I would think about $1 billion of securitization activity equating to between $30 million and $40 million.

Jackie Cleary: To the first part of your question, I think it's broadly in that range. I would think about AUD 1 billion of securitization activity equating to between AUD 30 million and AUD 40 million as that drop.

Speaker #1: As that drops, so that's in the right ballpark. It's probably 30 to 40.

Simon Fitzgerald: Okay.

Jackie Cleary: that's in the right ballpark. It's probably 30 to 40.

Speaker #4: Okay, good. And if I could just ask one more question, just in regards to the sort of momentum shifts that we're seeing in S&I, and also the platform.

Simon Fitzgerald: Okay, good. If I could just ask one more question just in regards to the sort of momentum shifts that we're seeing in S&I and also the platform. Can you sort of talk to how much is you're seeing in terms of from external customers versus your existing customer base?

Speaker #4: Can you sort of talk to how much you're seeing in terms of from external customers versus your existing customer base?

Speaker #2: Yeah. Maybe I'll pick that up. Obviously, really pleased with the momentum across both platforms and S&I. In platforms, we continue to see broad-based support, both from advisors who are part of the Acumen network, so part of the former advice licensees or AMP advice licensees, but also increasingly from IFAs in the market.

Blair Vernon: Yeah. Maybe I'll pick that up. Obviously, really pleased with the momentum across both platforms and S&I. In platforms, we continue to see broad-based support, both from advisors who are a part of the Acumen network, part of the former advice licensees or AMP advice licensees, but also increasingly from IFAs in the market. Both of those dimensions are delivering. We obviously are continuing to onboard new advisors. If you go back to that platform slide, I think we added 74 new advisors with more than 1 million AUM in the half. I think that's a 3x increase from the H1 2025. That momentum keeps building. That's encouraging. In S&I, clearly, very important milestone to get to a positive H1 cash flow. We are seeing a couple of things there. We're seeing new accounts opened.

Speaker #2: So both of those dimensions are delivering, and we obviously are continuing to onboard new advisors. So if you go back to that platform slide, I think we added 74 new advisors with more than $1 million AUM in the half.

Speaker #2: I think that's a sort of 3x increase from the first half of '25, so that momentum keeps building. So that's encouraging. In S&I, clearly, it's a very important milestone to get to a positive first-half cash flow.

Speaker #2: We are seeing a couple of things there. We're seeing new accounts opened. So, the appeal of our proposition—returns, digital, everything else—is seeing more digital uptake.

Blair Vernon: The appeal of our proposition returns, digital, everything else, is seeing more digital uptake, significant increases online. We're seeing renewed engagement and interest from employers. In fact, we've been in a number of pitches recently. We've got a number of new mandates in the pipeline. That's obviously quite a turnaround from where we've been. That's very encouraging. Particularly the things that are resonating with employers is obviously our lifetime solutions, our Super Boost solution, as well as our digital advice, which is a full-scale digital advice. That's really important for members in those schemes.

Speaker #2: So, significant increases online. But we're seeing renewed engagement and interest from employers. In fact, we've been in a number of pitches recently, and we've got a number of new mandates in the pipeline.

Speaker #2: And that's obviously quite a turnaround from where we've been, so that's very encouraging. Particularly, the things that are resonating with employers are our Lifetime Solutions, our Super Boost solution, as well as our digital advice, which is full-scale digital advice.

Speaker #2: So, that's really important for members in those schemes.

Speaker #4: Great, thank you.

Simon Fitzgerald: Great. Thank you.

Speaker #3: Thank you. We will now take our next question from the line of Julian Boganza from Goldman Sachs. Please ask your question, Julian. Your line is open.

Operator: Thank you. We will now take our next question from the line of Julian Braganza from Goldman Sachs. Please ask your question, Julian. Your line is open.

Speaker #5: Good morning, guys. Just the first question from me, on the partnerships line. If I look at your guidance, you've restated the growth from 10% per annum to 12%–15% ROI.

Julian Braganza: Good morning, guys. Just the first question from me, just on the partnerships line. If I look at your guidance, you've restated the growth from 10% growth per annum to 12% to 15% ROI. You've gone from a growth measure to an ROI measure. Just want to be clear on why that's the case, particularly given we're coming from a period of very strong growth. Just want to understand how you're thinking about this over the medium term, just from a growth angle.

Speaker #5: So you've shifted from a growth measure to an ROI measure. I just want to be clear on why that's the case, particularly given we're coming from a period of very strong growth.

Speaker #5: I just want to understand how you're thinking about this over the medium term, just from a growth angle.

Speaker #2: Yeah, obviously we haven't really rebased the way we're traditionally— I think we've always typically expressed it as a return on investment. But we have, obviously, grouped all partnerships together.

Blair Vernon: Yeah. We haven't really rebased the way we're expressing that. I think we've always typically expressed it as a return on investment. We have obviously grouped all partnerships together, so it's not simply China. We're considering the divisional treatment of China as we go forward naturally. When we look at FY26, our starting point guidance of 10% return through the year was actually we'd attrition through the cycle. We're seeing clearly further upside in 2026, hence that adjustment of 12% to 15%. There's obviously a bit of range in there, but it's clearly upwards from where we were.

Speaker #2: So, it's not simply China. We're considering the divisional treatment of China as we go forward, naturally. But when we look at FY26, our starting point guidance of 10% return through the year—actually, we'd express it through the cycle.

Speaker #2: We're seeing clearly further upside in ’26. Hence that adjustment of 12% to 15%. There's obviously a bit of range in there, but it's clearly upwards from where we were.

Speaker #5: So, if I assume a 12% to 15% ROI, and I assume a growing carrying value, I'm not seeing massive growth in China partnerships from here, in my forecast.

Julian Braganza: If I assume 12% to 15% ROI, and I assume a growing carrying value, I'm not getting massive growth in China partnerships from here in my forecast. I'm just wondering, is that guiding to a more moderate growth rate from here, or how should we be thinking about that?

Speaker #5: So, I'm just wondering, is that guiding to a more moderate growth rate from here? Or how should we be thinking about that?

Speaker #2: No, I don't think so. But look, I've got Adrian Ryan here with me as well, along with Jackie. Obviously, Adrian was our acting CFO through the period.

Blair Vernon: No, I don't think so. Look, I've got Adrian Ryan here with me as well, along with Jackie. Obviously, Adrian was our acting CFO through the period. He's now got a significant role in our China partnership. I might get Adrian just to fill in the details there.

Speaker #2: He's now got a significant role in our China partnership, so I might get Adrian just to fill in the details there.

Speaker #5: Adrian, Julian, when you look at the valuation and the margin, just be conscious of dividends and commodity investments as well. So as we broaden equity in those JVs, we offset the dividends as they come out.

Adrian Ryan: Hi, Julian. Julian, when you look at the valuation and the modeling, just be conscious of dividends, commodity investments as well.

Adrian Ryan: Yep.

Adrian Ryan: As we grow the equity in those JVs, we offset the dividends as they come out. Hence probably why you're seeing that.

Speaker #5: So that's probably why you're seeing that.

Speaker #4: Okay, got it. Okay, no, that makes sense. Okay, and then maybe just a second question on the Bank. Can I just understand how much capital can be released from the Bank from here?

Julian Braganza: Okay, got it. That makes sense. Maybe just a second question on the bank. Can I just understand how much capital can be released from the bank from here? I can see that the ROE is 3.6% for the H1. Even if I strip out just the one-off costs associated with AMP Bank GO, which I think is about AUD 10 million for the H1, I'm still getting a pretty weak ROE versus PCP. I want to understand.

Speaker #4: I can see that the ROE is 3.6% for the half. But even if I strip out just the one-off costs associated with AMP Bank Go, which I think is about $10 million for the half, I'm still getting a pretty weak ROE versus PCP.

Speaker #4: So, I want to understand what is the benefit from the capital efficiency initiatives, and when will that come through? And what is the sort of quantum of benefits that could come through from here as well?

Blair Vernon: Yep

Julian Braganza: What is the benefit from the capital efficiency initiatives, and when will that come through, and what is the sort of quantum of benefits that could come through from here as well? Thanks.

Speaker #4: Thanks.

Speaker #2: Yeah, thanks for the question. Look, as Jackie just mentioned, for every billion that we securitize or get capital relief on, that's in the range of $30 million to $40 million.

Blair Vernon: Yeah. Thanks for the question. As Jackie just mentioned, for every billion that we securitize or get capital relief on, that's sort of in the range of 30 to 40 million. In terms of the scale, we're continuing to evaluate how much to scale that, and that's a key piece of work for us as we've been working through the H1. We've obviously accelerated that momentum in the H1, and we would anticipate that continuing. There is clearly, as you will have seen in the marketplace, plenty of interest in a whole range of structures and strategies for capital relief. That continues to encourage us in terms of the breadth of opportunities that we have and the potential scale there. We'll continue to work on that through the H2 and update the market accordingly.

Speaker #2: In terms of the scale, we're continuing to evaluate how much to scale that, and that's a key piece of work for us as we've been working through the first half.

Speaker #2: We've obviously accelerated that momentum in the first half, and we would anticipate that continuing. There is clearly, as you will have seen in the marketplace, plenty of interest in a whole range of structures and strategies for capital relief.

Speaker #2: And so that continues to encourage us in terms of the breadth of opportunities that we have, and the potential scale there. We'll continue to work on that through the second half and update the market accordingly.

Speaker #4: Okay, got it. And then maybe just a final question on the investment income. I know you've benefited there from higher— I think you said from higher group cash as well as higher interest rates.

Julian Braganza: Okay, got it. Maybe just a final question on the investment income. I know you benefited there from higher, I think you said from higher group cash as well as higher interest rates. Correct me if I'm wrong.

Speaker #4: Correct me if I'm wrong, but I just want to understand the sustainability of that $25 million from here.

Blair Vernon: Yeah.

Julian Braganza: I just want to understand the sustainability of that AUD 25 million from here.

Speaker #2: Yeah. Yep. Yeah, no, perfectly valid question. Look, it did benefit. You're right. It did benefit from both dimensions. Yeah, liquidity is well above our sort of planned number.

Blair Vernon: Yeah.

Julian Braganza: Yeah. Thanks.

Blair Vernon: Yep. Yeah, no, perfectly valid question. Look, you're right, it did benefit from both dimensions. Yeah, liquidity is well above our sort of our planned number, and there's a couple of reasons for that. One, we've obviously seen more receipts than we anticipated. So we would intend to see that return closer to our target over time. So obviously, the announcements we've made now in terms of buyback and dividend contribute to that. So too does some of our contemplation of future deployment of that cash. One example will be we've obviously got some debt maturing later in the year. We'll evaluate that at the time. That's potentially going to soak up some of that. Generally, I would see that investment income tracking downwards from here based on balance.

Speaker #2: And there are a couple of reasons for that. One, we've obviously seen more receipts than we anticipated, and so we would intend to see that return closer to our target over time.

Speaker #2: And so, obviously, the announcements were made now in terms of buyback and dividend contributed to that, but so too does some of our contemplation of future deployment of that cash.

Speaker #2: So, one example will be, we've obviously got some debt maturing later in the year. We'll evaluate that at the time. That's potentially going to soak up some of that.

Speaker #2: So generally, I would see that investment income tracking downwards from here, based on balance.

Speaker #4: Okay, got it. And so, just the last question from me, in terms of the dividend—is your guidance still for 2 cents per share over the next few halves?

Julian Braganza: Okay, got it. Sorry, just the last question from me. In terms of dividend, is your guidance still for AUD 0.02 per share over the next few halves, given the higher payout ratio coming through from China Life, the higher growth coming through from China Life? Also just the higher payout ratio this half, the AUD 0.03 per share. Yeah, what's your guidance for out-of-year dividends at the moment?

Speaker #4: Given the higher payout ratio coming through from China, the higher growth coming through from China, and also just the higher payout ratio this half—the 3 cents per share—so, yeah, what's your guidance for out-of-year dividends at the moment?

Speaker #2: Yeah, so I guess that's a key revision for us at this point. As we've announced a 3-cent interim dividend as we are at the present point in time, the board's going to review the final dividend as we look at FY26.

Blair Vernon: Yeah. I guess that's a key revision for us, at this point. As we've announced, an AUD 0.03 interim dividend as we are at the present point in time. The board's going to review the final dividend as we look at FY2026. Essentially, that new position essentially replaces that prior guidance, with our AUD 0.03 interim dividend being the starting point.

Speaker #2: So essentially, that new position basically replaces that prior guidance, with our 3-cent interim dividend being the starting point.

Speaker #4: Got it. Thanks so much for that, guys. Much appreciated.

Julian Braganza: Got it. Thanks so much for that, guys. Much appreciated.

Speaker #2: Thanks, Julian.

Blair Vernon: Thanks, Julian.

Speaker #1: Thank you. We will now take our next question from Seedalth Parameswaran from JP Morgan. Please ask your question, Seedalth. Your line is open.

Operator: Thank you. We will now take our next question from Siddharth Parameswaran from JP Morgan. Please ask your question. Siddharth, your line is open.

Speaker #4: Hi there, everybody. I'm just maybe if I can start my first question just on the China partnerships. I was keen to just understand the or just match up the growth in revenues there with the growth in renminbi AUM.

Siddharth Parameswaran: Hi there, everybody. Maybe if I can start my first question just on the China partnerships. I was keen to just understand the, or just match up the growth in revenues there with the growth in renminbi AUM. If I look at the guidance you've, or just the numbers that you've shown, FY24 to FY25, it looks like there's about 15% growth in renminbi. It looks like the revenues in the assets under management, but looks like the revenues grew close to 30%. It does feel like there is either something one-off or there's some changes in fees or something's changed in terms of the amount that's being charged. Maybe you could just help us understand what's happening on that revenue line. It seems to have grown much quicker than the assets under management in the China Life Pension Company.

Speaker #4: If I look at the guidance you've given, or just the numbers that you've shown, FY24 to FY25, it looks like there's about 15% growth in renminbi.

Speaker #4: But it looks like the revenues—sorry, in the assets under management—but it looks like the revenues grew close to 30%. It does feel like there's either something one-off, or there's been some changes in fees, or something's changed in terms of the amount that's being charged.

Speaker #4: Maybe if you could just help us understand what's happening on that revenue line. It seems to have grown much quicker than the assets under management in the China Life Pensions Company.

Speaker #2: Yeah, thanks, Jed. I might get Adrian to give you some more detail on that, because we've been obviously tracking that very closely.

Blair Vernon: Yeah. Thanks, Sid. I might get Adrian to give you some more detail on that because we've been obviously tracking that very closely.

Speaker #5: Yeah, so just what we do on this call is product mix, as I said. Underneath that, there are different margins, different products, etc., but you’re correct.

Adrian Ryan: Yeah. Just what we do underscore is probably product mixes that sit underneath that. There is different margins, different products that sit underneath it. You're correct, there is a growth in there, and that's just natural shifts to higher margin.

Speaker #5: There is growth in there, and that's just the natural shift in our margin.

Blair Vernon: The other thing, Sid, that was in there is in prior years Through the 2023 year, there was some product mix change that impacts some of the historicals because there were some policy changes. That's now washed through the numbers.

Speaker #2: The other thing, Sid, that was in there is, in prior years through the 2023 year, there was some product mix change that impacts some of the historicals because there were some policy changes.

Speaker #2: So, that's now washed through the numbers.

Speaker #4: Okay. Okay, so I mean, on and go forward basis then, if we're just looking at this business, leaving your guidance aside because it seems I mean, as I understand this business, this is not a capital-intensive business.

Siddharth Parameswaran: Okay. On a go-forward basis then, if we're just looking at this business, leaving your guidance aside, because it seems as I understand this business, this is not a capital-intensive business. This is not one where you'd normally guide on an ROI metric. If I just leave your guidance aside, and if I was just modeling this as a standalone business, should I be modeling revenues to grow at that sort of 12% type growth range? How are you thinking about the business?

Speaker #4: This is not one where you’d normally guide on an ROI metric. If I just leave your guidance aside, and if I was just modeling this as a standalone business, should I be modeling revenues to grow at that sort of 12% growth range?

Speaker #4: How are you thinking about the business?

Speaker #5: Yeah, so with that, and or two, it's a combination of voluntary and mandatory contributions there. But broadly speaking, it's 12% contributions in that market.

Blair Vernon: Yeah. As we said in pillar 2, there's a combination of voluntary and mandatory contributions there, but broadly speaking, it's 12% contributions in that market. We've also communicated.

Speaker #5: We've also communicated that we've probably invested in lower fixed income products. So you would have a growth there from markets as well.

Siddharth Parameswaran: Good

Blair Vernon: they're probably invested in lower cost fixed income products, you would have a growth there from markets as well.

Speaker #4: Right. So, sorry, the 12% is the growth in fund from contributions, is that right? Just so that I know what the 12% relates to.

Siddharth Parameswaran: Right. Sorry, the 12% is the growth in FUA from contributions, is that right? Just so that I know what the 12%.

Siddharth Parameswaran: Yeah

Siddharth Parameswaran: percent relates to.

Siddharth Parameswaran: Yeah

Siddharth Parameswaran: percent relates to.

Speaker #5: Yes, we're saying bid or two as a combination of both mandatory and voluntary contributions. Broadly speaking, across both, it's 12%.

Blair Vernon: Yes. As I said, pillar two has a combination of both mandatory and voluntary contributions. Broadly speaking, across board.

Siddharth Parameswaran: Yeah

Speaker #2: And that 12%.

Blair Vernon: it's 12%. That 12% is.

Speaker #4: The 12% of fund.

Siddharth Parameswaran: The 12% of FUM.

Speaker #2: Yes, so the 12% contribution rate is underpinning that growth curve that we're seeing. Obviously, pillar three we regard as the next opportunity, but it's unrealized at this stage.

Blair Vernon: Yes. The 12% contribution rate is underpinning that growth curve that we're seeing. Obviously pillar three, we regard as the next opportunity, but unrealized at this stage. That potentially has more upside, but we're very focused on pillar two at the moment. That growth curve you're seeing, is the thing we're looking at in terms of AUM growth.

Speaker #2: So that potentially has more upside, but we're very focused on pillar two at the moment. And so that growth curve you're seeing is the thing we're looking at in terms of AUM growth.

Speaker #2: And obviously, up to 9%.

Siddharth Parameswaran: Okay.

Siddharth Parameswaran: Up at 9%.

Speaker #4: But sorry, just to clarify, is the 12% on AUM, or is it on salaries, or what is that 12% number on?

Siddharth Parameswaran: Sorry, just to clarify, is the 12% on AUM or is it on salaries? What is that 12% number on?

Speaker #5: Yes, broadly beyond salaries, but as I said, there are low investment returns in there. So it is broadly 12% contributions.

Blair Vernon: Yeah. It would broadly be on salaries, but as I said, it's low investment returns in there, so it is broadly a 12% contributions.

Speaker #3: But AUM was up 9% for the half.

Jackie Cleary: AUM was up 9% for H1.

Speaker #5: Yeah.

Blair Vernon: Yep.

Speaker #3: So I think our mandatory and voluntary contributions maxed at 12, but the AUM growth was 9% in the half. So just disconnect the two.

Jackie Cleary: I think mandatory and voluntary contributions back to 12%, but the AUM growth.

Blair Vernon: Correct

Jackie Cleary: was 9% in H1. Just disconnect the two.

Speaker #4: Yeah, okay. So, just to think about it going forward—9% in the half, and we've seen historical growth rates at 12% on AUM.

Siddharth Parameswaran: Yep. Okay. Just to think about it going forward, 9% in the H1, we've seen historical growth rates at 12% on AUM, there's a 12% contribution rate. How should we think about the growth rate of that business going forward? Obviously there's operating leverage as well, which you've been getting. Presumably, earnings will grow quicker than that. I'm just trying to make sure. There's a lot going on in those-

Speaker #4: There's a 12% contribution rate. How should we think about the growth rate of that business going forward? Because obviously, there's operating leverage as well, which you've been getting.

Speaker #4: So. Presumably,

Speaker #1: You know, earnings will grow quicker than that. But I'm just trying to make sure—there's a lot going on in those numbers.

Siddharth Parameswaran: Yeah

Blair Vernon: Yeah

Siddharth Parameswaran: numbers. I'm just trying to make sure I understand the growth outlook for that business, which I don't believe you should be guiding on an ROI metric. Maybe you can correct me on why it should be-

Speaker #1: I'm just trying to make sure I understand the growth outlook for that business, which, you know, I don't believe it should be.

Speaker #1: And you should be guiding on an ROI metric. But, you know, maybe you can correct me on why it should be an ROI metric.

Blair Vernon: Yeah

Siddharth Parameswaran: an ROI metric.

Blair Vernon: Well, just to be clear, we are obviously, it's not our job to guide on the growth curve of our partnership. I think that's for our partners in China to continue to deliver to. I appreciate that it's a significant component, and what we're reflecting here is what we're observing. That 9% AUM growth that we've seen already is reflective of those two factors. As Adrian said, that 12% contribution rate and a relatively low volatility. We see relatively conservative investments. We see that coming through in a pretty steady rate in terms of the CLPC contributions. As you know, yes, it is capital light. It doesn't issue capital-demanding products, unlike some of the other pension companies in China. As to the cost to income position and the ongoing operating leverage, clearly you're seeing scale benefits. There are some jaws there that we're plotting.

Speaker #2: Well , just to be clear , we're obviously , , you know , it's not our job to guide on the growth curve of , , our partnership .

Speaker #2: I think that's for our partners in China to continue to deliver to me. But I appreciate that it's a significant component. And so what we're reflecting here is what we're observing — that 9% AUM growth that we've seen already is reflective of those two factors.

Speaker #2: So , as Adrian said , that sort of that 12% contribution rate and a relatively low volatility . So we see relatively conservative investment .

Speaker #2: So we see that coming through in a pretty steady rate in terms of the PC contributions . , as you as you note .

Speaker #2: Yes , it is capital light . It's it doesn't issue , , capital demanding products , unlike some of the other pension companies in China .

Speaker #2: , as to the cost to income , , position and the ongoing operating leverage , clearly you're seeing scale benefits . So yeah , there is some jaws there that we're , that we're plotting and , , you know , our approach is though , from a partnerships point of view has been consistent to consistently guide on our view about what our returns are on that investment over time .

Blair Vernon: Our approach is, though, from a partnership's point of view, has been to consistently guide on our view about what our returns are on that investment over time. That's why we've held with that approach. Now, as I mentioned before, we'll reconsider at the full year how we approach China as a reporting unit, and the additional color we can add to that.

Speaker #2: And so that's why we've , you know , we're held with that approach now , as I , as I mentioned before , we'll reconsider , , at the full year , how we , , approach China as , as a , as a reporting unit , , and the additional color we can , we can add to that

Speaker #1: Okay . Okay . Thank you . Thank you very much . , maybe just my final question , just on the bank , just I want to just make sure , , I understand the funding advantage from AMP bank go .

Siddharth Parameswaran: Okay. Thank you very much. Maybe just my final question. Just on the bank, I want to just make sure I understand the funding advantage from AMP Bank GO. You've already scaled up to AUD 1.7 billion of deposits, and this was supposed to be low-cost transactional funding. That's quite a big chunk of your deposit base already looking to scale it to AUD 2 billion. Could you just help us understand how much cheaper the funding is on AMP Bank GO versus the rest of your deposit funding?

Speaker #1: So , you know , you've , you've already scaled up at $1.7 billion of deposits . And this was supposed to be low cost transactional .

Speaker #1: , you know , transactional funding . That's quite a big chunk of your deposit base already looking to scale it to 2 billion .

Speaker #1: , could you just help us understand how much deeper the funding is on AMP Bank go versus the , the , you know , the rest of your deposit funding .

Speaker #2: Sure . So the 1.7 billion is the total , , of deposits at the half year . Not all of that is transaction accounts , of course .

Blair Vernon: Sure. The AUD 1.7 billion is the total of deposits at the H1. Not all of that is transaction accounts, of course. There's a significant component, which is savings accounts. That is reflecting some of that transition we're already seeing from existing bank to the new bank, along with new customer growth. The mix issue in GO is critical for us, and clearly the aspiration is to continue to grow that mix percentage in transaction accounts. The AUD 1.7 billion is meaningful, but still, not a significant component of our overall funding. It's got to both grow, from efficiency point of view, because it's more efficient to manage them in GO than it is in the existing bank. Then the mix shift needs to continue to be in favor of those transaction accounts, which are really the high margin price.

Speaker #2: So there's , you know , a significant component which is savings accounts . So that is reflecting some of that , , transition .

Speaker #2: We're already seeing from existing bank to the new bank , along with new customer growth . So the mix issue in , in , in go is critical for us .

Speaker #2: And clearly the aspiration is to continue to grow that mix percentage in transaction accounts . , the 1.7 billion , you know , is meaningful .

Speaker #2: But still, you know, not a component of our overall funding. And so it's got to both grow from an efficiency point of view, because it's more efficient to manage them and go than it is in the existing bank.

Speaker #2: And then the mix shift needs to continue to , to be in favor of those transaction accounts , which are really the high margin prize .

Speaker #2: And so, as we noted, you know, there's more work to do in that space.

Blair Vernon: As we noted, there's more work to do in that space.

Speaker #3: Just just to add to that , you know , we are at a transition point in terms of the funding mix , where we have closed the legacy platform for new deposits , and you're seeing that through go .

Jackie Cleary: Just to add to that, we are at a transition point in terms of the funding mix, where we have closed the legacy platform for new deposits, and you're seeing that through Go. If you look at the NIM bridge in the appendix, you'll see a 12 basis point funding benefit, which is the initial signs of that transformation of the funding mix coming through. That is partially offset by the capital release and securitization trades we've done, which has a net impact of 9 basis points. Whilst it's at its infancy, I think the NIM bridge does highlight as we transform that funding mix between the legacy and growing Go, you are seeing the early signs of that playing out through the NIM bridge. That will obviously take time to scale, but we're encouraged by the early signs.

Speaker #3: If you if you look at the , Nim bridge in the appendix , you'll see a 12 basis point funding benefit , which is the initial signs of that transformation of the funding coming through .

Speaker #3: Now, that is partially offset by the capital release and securitization trades we've done, which has a net impact of nine basis points.

Speaker #3: So whilst it's at its infancy , I think the Nim bridge , you know , does highlight as we transform that funding mix , , between the legacy and growing go , you are seeing the early signs of that playing out through , through the Nim bridge , but that will obviously take time to scale .

Speaker #3: But we're encouraged by the early signs.

Speaker #1: Okay. Thank you very much.

Siddharth Parameswaran: Okay. Thank you very much.

Speaker #4: Thank you. And we'll take our next question from Levittown, Sotiriou from MST Financial. Please ask your question. Your line is open.

Operator: Thank you. We'll take our next question from Lafitani Sotiriou from MST Financial. Please ask your question, Lafitani. Your line is open.

Speaker #5: Thank you . Just just a quick follow up . I know there's a lot of questions so far on CLP . See , , and just to follow up on what Sid was digging into on , on the margin , because it is a noticeable step up .

Lafitani Sotiriou: Thank you. Just a quick follow-up. I know there's a lot of questions so far on CLPC. Just to follow up on what Sid was digging into on the margin, because it is a noticeable step up that came through. Has there been something akin to, if you look at the Australian market where you have MySuper and all these different modules you can step up in, did something like that happen in the last year and a half in the business that has seen the material margin shift? Can you talk to whether Pillar Two and Pillar Three, and I know Pillar Three is only small at the moment, but whether there's a much difference in the revenue margin in that bucket?

Speaker #5: , that that came through , has there been something akin to , you know , if you look at the Australian market where you have mysuper choice and all these different modules , you can step up in , it's something like that happen in the last year , year and a half in the business that that has seen the material margin shift .

Speaker #5: And , and can you talk to whether pillar two and three ? I know pillar three is only small at the moment , but whether there's a much difference in the margin revenue margin , , in that bucket .

Speaker #2: Yeah . Thanks . Thanks . , no , look , the short answer is no . There's not any specific one off margin .

Blair Vernon: Thanks, Lev. Look, the short answer is no. There is not any specific one-off margin variance that we are seeing in terms of the reported results. There is mix issues inside the portfolio, obviously. Broadly it is just ongoing growth within the business. As I said, in the 2023 year, there was a more significant mix change because there was a regulatory change back in 2023. If you recall some of our earlier reporting a number of years ago, we talked to that in terms of some of the flow and impact. That is washed through. What you are seeing now is predominantly that Pillar Two growth. There is not significant margin difference that I am aware of between Pillar Two and Pillar Three. Pillar Three is obviously very small, though. It is a little more attractive a margin.

Speaker #2: , variance that , that we are seeing in terms of the reported results . , there's a , there is mix issues inside the portfolio .

Speaker #2: Obviously . , but broadly it's just ongoing growth . , within the business . , as I said , there was , you know , in the , in the 23 year , there was , , a more significant mix change because there was a regulatory change back in 23 .

Speaker #2: And if you recall , some of our earlier reporting , a number of years ago , we talked to that in terms of some of the flow and impact , but that's washed through .

Speaker #2: So what you're seeing now , you know , is , is predominantly that pillar two growth . , there's not significant , , margin difference that I'm aware of in between pillar two and pillar three , pillar three is obviously very small though .

Speaker #2: , it's a little , it's a , it's a little more attractive on margin . , but that doesn't have a meaningful impact in terms of earnings yet because it's obviously such small volume .

Blair Vernon: That does not have a meaningful impact in terms of earnings yet because it is obviously such small volume. Obviously, a large addressable market.

Speaker #2: Obviously, a large addressable market, but you know, to be...

Speaker #5: One of the .

Speaker #2: Things

Speaker #5: And one of the things you've talked about in the past in relation to your share of net flows and how—what does that look like?

Lafitani Sotiriou: One of the things you have talked to in the past, in relation to CLPC, is your share of net flows and what does that look like? You are openly talking about it being the preeminent player in that pension space. Is it holding market share? Is it gaining? What does the sort of market position look like?

Speaker #5: Is it , , you know , you're openly talking about it being the preeminent , , player in that pension space . Is it holding market share or it gaining , , what is there sort of market position look like

Blair Vernon: I do not think we have ever gone through a sort of detail of market position. Certainly, my perspective, I have used that term a number of times, preeminent. A couple of reasons for that. One, they have got a very dominant brand position. They do have a very strong position in terms of Pillar Two, which is around about 30% market share. If you do the maths, there are 12 pension businesses, they account for 30%. That is significant. In Pillar Three, equally, they are a very significant participant because they have been participating in the pilot across all regions. As that scales, we would expect the strength of the China Life brand to be significant in that because it is a much more D2C style business, much more retail-oriented as opposed to corporate.

Speaker #2: , I don't think we've ever gone through a sort of detail of market position , but certainly , you know , my , my perspective , I think I've used that term a number of times preeminent , I think a couple of reasons for that .

Speaker #2: One , they've got a very dominant brand position . They do have a a very strong position in terms of pillar two , which is around about 30% market share .

Speaker #2: , so if you , I mean , do the maths , I think . 12 , pension businesses . So they account for 30% .

Speaker #2: So that's significant . , in pillar three equally , they are a very significant because they've been participating in the pilot across all regions .

Speaker #2: , as that scales , we would expect the strength of the China brand , , to be significant in that because it's a much more DTC style business , more , , , you know , much more retail oriented as to corporate , but in that pillar two space , that 30% share is , , you know , where I've drawn my , my characterization of preeminent .

Blair Vernon: In that Pillar Two space, that 30% share is where I've drawn my characterization of preeminent.

Speaker #5: Yeah . Got it . , can I move on to the , , capital stack and , , over 300 million in excess capital , , you've flagged the DTA on balance sheet .

Lafitani Sotiriou: Yeah, got it. Can I move on to the capital stack?

Blair Vernon: Sure

Lafitani Sotiriou: Of the AUD 300 million excess capital, you've flagged the DTA on balance sheet. I think you still have some DTAs sitting off balance sheet, if you could just update on that. Can you give us an idea on, are the one-off costs largely done? Are they rolling off? We've had a lot of these non-core assets for sale, like PCCP for a while now. What would be the hold up around selling that asset?

Speaker #5: I think you still have some DTA sitting off balance sheet . If you could just update on that , but , you know , can you give us an idea on , you know , as the one off , the one off costs largely done ?

Speaker #5: Are they rolling off and , , and we've had a lot of these non-core assets for sale , like , , PCP , , for a while now , , what would be the hold up around selling that asset

Speaker #2: Yeah . Thanks . , , maybe if I just , , talk to Dtas . Yes . Good utilization . Obviously in the half , there are some , , dtas off balance sheet still to be recognised .

Blair Vernon: Yeah, thanks, Lev. Maybe if I just talk to DTAs. Yes, good utilization, obviously, in the half. There are some DTAs off balance sheet still to be recognized. The broad picture on that is about AUD 200 million, although they have some varying nature in terms of their ability to be utilized. Certainly there is some additional off balance sheet yet to be recognized. In terms of the non-strategic assets, as I said, we obviously want to realize those as market conditions allow. PCCP, as we've talked about quite openly, is one of those, but so too is the range of your residual carry and other matters. We continue to pursue all those opportunities. We'll certainly update as soon as something emerges there. It remains our clear focus to realize that over time.

Speaker #2: , the , the broad picture on that is about 200 million , , although they have some varying nature in terms of , their ability to be utilized , , but certainly there is some , , additional off balance sheet yet to be , to be recognized , , in terms of the , you know , the non-strategic assets , , as I , as I said , you know , we obviously want to realize those as market conditions allow PCP , as we've talked about quite openly , is one of those .

Speaker #2: But so too is the range of your residual carry . , and other matters . So , you know , we continue to pursue all those opportunities , , and , you know , we certainly update as soon as something emerges there , , it clear focus to , to realize that over time , .

Speaker #5: Just the one-off cost, and that's it.

Lafitani Sotiriou: Just the one-off costs and that's it.

Speaker #2: Yeah . Sorry , one off cost , apologies . , yeah , the below the line is obviously continuing to , to trend down , which is pleasing .

Blair Vernon: Yeah. Sorry, one-off costs, apologies. Yeah, the below the line is obviously continuing to trend down, which is pleasing. You would've seen about half or a little more of the tail of that simplification spend through. There's a small amount of that left in H2. You're seeing generally, much fewer items below the line, which is consistent with our approach, Lev, where we want to have this operating business not significant one-offs. I think the fall in litigation obviously reflects continuing to resolve legacy matters and generally that sort of forward momentum in the business, which is important.

Speaker #2: , you would have seen the , you know , , about half or a little more of the , the tail of that simplification spend , , through .

Speaker #2: So there's , there's a , there's a small amount of that left in the second half , but you're seeing generally , , much fewer , , items below the line , which is consistent with our approach where we , you know , we want to have this operating business , not , , you know , significant one offs .

Speaker #2: I think the , the fallen litigation , obviously reflects continuing to resolve legacy matters and generally that sort of forward momentum in the business , which is , you know , important

Speaker #5: Thanks .

Lafitani Sotiriou: Thanks.

Speaker #4: Thank you. We will now take our next question from the line of Freya Kong from Bank of America. Please ask your question.

Operator: Thank you.

Blair Vernon: Thanks, Lev.

Operator: We will now take our next question from the line of Freya Kong from Bank of America. Please ask your question, Freya, your line is open.

Speaker #4: Freya, your line is open.

Speaker #6: Hi . Good morning , and thanks for taking our questions . , can I just follow up on the product mix comments you made for CLP ?

Freya Kong: Hi. Good morning. Thanks for taking our questions. Can I just follow up on the product mix comments you made for CLPC washing through? Back to Sid's question, which was basically revenues grew a lot faster than AUM in FY25. Was there some of that coming through in H1 2026 as well? Going forward, you'd expect revenue growth to track closer to AUM growth?

Speaker #6: See washing through , , because revenue is back to seeds question , which was basically revenues grew a lot faster than AUM in FY 25 .

Speaker #6: Was there some of that coming through in first half '26 as well? And going forward, you'd expect revenue growth to track closer to AUM growth?

Speaker #7: Yes . Sir . Adrian . So we expect that by to to grow at normal . As I said to product mix is probably aligned up now .

Adrian Ryan: Yes, Freya. Adrian Ryan here. We'd expect that to grow as normal. As I said, the product mix is probably lined up now. Blair mentioned there was a regulatory change in prior periods. Yep.

Speaker #7: Claire mentioned there was a regulatory change in prior years, prior periods. Yep.

Speaker #6: Okay . Great . And then just on the operating leverage for Clpc , which continues to come through quite nicely , 45% CTI is already quite strong .

Freya Kong: Okay, great. Just on the operating leverage for CLPC, which continues to come through quite nicely. 45% CTI is already quite strong. Do you expect that to continue and more scale benefits to flow through?

Speaker #6: Do you expect that to continue? And for more scale benefits to flow through?

Speaker #2: I mean , obviously that'll depend on operating conditions in China and Clpc . , approach to that . But certainly we're encouraged by , you know , those draws , will continue to , to report that .

Blair Vernon: Obviously, that'll depend on operating conditions in China and CLPC's approach to that. Certainly, we're encouraged by those draws. We'll continue to report that. I think that clearly, the addressable scale growth continues to look positive from our point of view as a 19.9% shareholder.

Speaker #2: I think the clearly the addressable scale growth continues to , to , to look positive from our point of view as a , you know , a 19.9% shareholder

Speaker #6: Okay , great . And , and just on the payout ratio from China partnerships , it's stepped up to 40 to 41% . , is there any scope for this to increase ?

Freya Kong: Okay, great. Just on the payout ratio from China Partnerships, it stepped up to 40% to 41%. Is there any scope for this to increase? What conversations have you had, or are there any companies in the market we can look to as comps for-

Speaker #6: And what conversations have you had, or are there any companies in the market we can look to as comps for a decent payout ratio?

Blair Vernon: Yeah

Freya Kong: a decent payout ratio?

Speaker #2: Yeah . , for there aren't many comparables on the market . , so appreciate that . That's rather unique . Obviously , you know , as we've said consistently , we're continuing to to our China partners about , , capital efficiency within the business .

Blair Vernon: Yeah. Freya, there aren't many comparables in the market, so appreciate that that's rather unique. Obviously, as we've said consistently, we continue to talk to our China partners about capital efficiency within the business. As we said, it is a relatively capital light business, albeit it's growing strongly. That lift in payout ratio for CLPC from 35% to 41% was very pleasing. We'll continue to have those conversations with our partners in China, but equally accept and respect the fact that they are scaling and growing that business tremendously. We would want to, first and foremost, see that as the principal activity, and I think they're doing a fantastic job of it.

Speaker #2: And as we , as we said , it is a relatively capital light business , albeit it's growing strongly . , so that lifting power ratio for CLP from 35 to 41 was very pleasing .

Speaker #2: , and we'll continue to , , to have those conversations with our partners in China , but equally accepting and respect the fact that they are , you know , scaling and growing that business tremendously .

Speaker #2: And so we would want to , , first and foremost see that , , as the principal , , activity . And I think they're doing a fantastic job of it .

Speaker #6: Okay , great . And sorry , one final question on the bank . Nim . , if there's further capital optimization in the second half of the year , would that put downward pressure on the Nim guidance that you've given ?

Freya Kong: Okay, great. Sorry, one final question on the bank NIM. If there's further capital optimization in H2, would that put downward pressure on the NIM guidance that you've given? Just how do I think about the two?

Speaker #6: Just how should I think about the two?

Speaker #3: I would I'll take that one . Blair . I think that the Nim guidance we've given you , which is broadly flat to where it is now , at around 1.25% , incorporates , , you know , the net impact on the benefits we're seeing on the funding mix side and securitization .

Jackie Cleary: I'll take that one, Blair. I think that the NIM guidance we've given you, which is broadly flat to where it is now at around 1.25%, incorporates the net impact on the benefits we're seeing on the funding mix side and securitization. I would say that is incorporated into that guidance.

Speaker #3: So I would say that that is incorporated into that guidance.

Speaker #6: Okay, so we're assuming flat versus first half, which means no further securitizations assumed in the second half. Or is that the wrong way to think about it?

Freya Kong: Okay. We're assuming flat versus H1, which means no further securitizations assumed in H2, or is that the wrong way to think about it?

Speaker #3: No , that's not what I'm saying . I'm saying that we will continue . We expect to continue to see benefits as we AMP bank , go , which provides us a positive impact in terms of the Nim .

Blair Vernon: No.

Jackie Cleary: No, that's not what I'm saying. I'm saying that we expect to continue to see benefits as we scale AMP Bank GO, which provides us a positive impact in terms of the NIM. What I'm saying is, we expect that we will continue to look at capital optimization of the bank, which is a net offset to what we're seeing in terms of the funding benefit, which is why we're guiding to a flat NIM. We anticipate continue to kind of optimize, find the efficiency frontier there, as we think about capital efficiency within the bank. It's incorporated in our guidance.

Speaker #3: What I'm saying is, we expect that we will continue to look at capital optimization of the bank, which is a net offset to what we're seeing in terms of the funding benefits, which is why we're guiding to a flat NIM.

Speaker #3: But we anticipate continue to kind of optimize , you know , find the efficiency frontier there . , as we think about capital efficiency within the bank .

Speaker #3: So, it's incorporated in our guidance.

Speaker #6: Okay . Thank you .

Freya Kong: Okay. Thank you.

Speaker #4: Thank you . We will now take our next question from Nigel Pittaway from Citi . Please go ahead . Nigel , your line is open .

Operator: Thank you. We will now take our next question from Nigel Pittaway from Citi. Please go ahead, Nigel, your line is open.

Speaker #8: Oh good morning Blair . Jackie . Adrian , just first of all , maybe a follow up question on the bank . , I just wondering what's the ceiling of securitization funding in the bank ?

Nigel Pittaway: Good morning, Blair, Jacqui, Adrian. Just first of all, maybe a follow-up question on the bank. I was just wondering, what's the ceiling of securitization funding the bank you'd be comfortable to carry, and how quickly might you expect to get there?

Speaker #8: ...you'd be comfortable to carry, and how quickly might you expect to get there?

Speaker #2: Sure . Thanks , Nigel . , look , we haven't got a predetermined number on that . , as Jackie said , there's kind of a , you know , an efficiency frontier there that we're looking at in terms of the mix of funding that we attract through go , , the ramp down of the sort of heritage bank and then the opportunities , that we see in the market across , you know , not just securitization and warehousing , but the range of capital relief measures .

Blair Vernon: Sure. Thanks, Nigel. Look, we haven't got a predetermined number on that. As Jackie said, there's kind of an efficiency frontier there that we're looking at in terms of the mix of funding that we attract through Go, the ramp down of the Heritage Bank, and then the opportunities that we see in the market across not just securitization and warehousing, but the range of capital relief measures. As you're seeing, there's more activity in that space. There's clearly very significant demand for that, and a trend in that direction. We're looking to take advantage of that as appropriate and considering the wider mix.

Speaker #2: , and as you're seeing , there's more activity in that space . So there's clearly very significant demand for that . , and , and a trend in that direction .

Speaker #2: And so we're looking to take advantage of that as appropriate, and considering, you know, the wider mix.

Speaker #8: Okay . , all right . , maybe moving on then . I mean , one of the things that doesn't seem to have gotten much attention yet unless I missed it , was the variable cost performance in the platform business , which , you know , has been one of the seems to have at least been one of the key generators of the profit increase .

Nigel Pittaway: Okay. All right. Maybe moving on then. One of the things that doesn't seem to have gotten much attention yet, unless I missed it, was the variable cost performance in the Platforms business, which now has been one of the key generators of the profit increase. Maybe you can sort of expand on what's been going on there, and secondly, whether the scopes are further reductions moving forward.

Speaker #8: But maybe you can sort of expand on what's been going on there. And secondly, whether there's scope for further reductions moving forward.

Speaker #2: , yeah , I mean , there are obviously we continue to see operating leverage across platforms . , and there's some mix issues between variable and control as we start to , , insource some activities that have sometimes been outsourced through variable costs .

Blair Vernon: Yeah. Obviously, we continue to see operating leverage across Platforms. There's some mix issues between variable and controllable as we start to in-source some activities that have sometimes been outsourced through variable costs. There is a mix across variable and controllable costs. Broadly speaking, as we continue to develop capability and functionality, that gives us more opportunity. I sort of look at Platforms as sort of a total cost, variable and controllable, combined. As Jackie mentioned, driving that jaws between a growth in revenue and controlling those costs, both variable and controllable, frankly, is critical.

Speaker #2: And so there is , it's a mix variable controllable costs , but broadly speaking , , we're , as we continue to develop and capability and functionality , , that gives us more opportunity .

Speaker #2: , I should look at platforms as sort of a total cost variable and control combined and , you know , as , as Jackie mentioned , driving that draws between a growth , , in , , revenue and controlling those costs , both variable and controllable , frankly , is critical

Speaker #9: Okay .

Nigel Pittaway: Okay. If you just sort of focus on the revenue margin in Platforms, obviously a couple of sort of explanations you give in the side there do actually seem negative in terms of sort of fee cliffs and probably mix as well.

Speaker #8: , and then sort of , if you just sort of focus on the revenue margin in platforms , I mean , obviously a couple of sort of explanations you give in the , in the side there do actually seem negative in terms of sort of fee cliffs and , and probably mix as well , , clearly you've had a couple of months of the cash change .

Blair Vernon: Yep

Nigel Pittaway: you've had a couple of months of a cash change. Is there anything else that's going on? Stable margins against those two negatives seems quite a good outcome.

Speaker #8: Is there anything else that's going on? I mean, stable margins against those two negatives seemed quite a good outcome. Yeah.

Blair Vernon: Yeah.

Speaker #8: It's just maybe .

Nigel Pittaway: It's just maybe.

Speaker #7: Yeah .

Blair Vernon: Yeah

Speaker #8: If there's anything else .

Nigel Pittaway: If there's anything else in there.

Speaker #2: In there . Yeah . So obviously . Yeah . No . Agree Nigel . And so as , as we flagged previously , , and as now evident in the market in terms of public disclosures , we made some quite significant changes to the way we manage or we deliver cash solutions into the platform .

Blair Vernon: Yeah, obviously, yeah, no, agree, Nigel, as we'd flagged previously, and as is now evident in the market in terms of our public disclosures, we made some quite significant changes to the way we manage or we deliver cash solutions into the platform, so splitting between investment options and sort of holding. That has obviously contributed to some of that margin stabilization. There are some other things within the broader mix, but that was one of the positives. We continue to watch closely the mix change, and as we've previously indicated, within those managed portfolios while they grow strongly, are looking always at how our manufactured solutions and product can form part of those portfolios is an important component.

Speaker #2: So splitting between investment options and sort of holding , , and that has obviously contributed to some of that margin stabilization . There are some other things within the broader mix , but that was one of the positives .

Speaker #2: We continue to watch closely the mix change . And as we've previously indicated , , you know , within , within those managed portfolios , while they grow strongly , , looking always at how our manufactured solutions , , and product can form part of those portfolios is an important component .

Speaker #2: That's obviously a whole lot easier to contemplate given the tremendous investment returns that Anna and the team have delivered that obviously benefit our members, but also form part of that broader investment offering as we manufacture in that space.

Blair Vernon: That's obviously a whole lot easier to contemplate given the tremendous investment returns that Anna Shelley and the team have delivered that obviously benefit our AMP Super members, but also form part of that broader investment offering as we manufacture in that space.

Speaker #8: Okay . Thank you for that . And maybe just finally , I mean , you mentioned that , , you're still sort of looking at maybe doing something with PCP when the opportunity arises .

Nigel Pittaway: Okay, thank you for that. Maybe just finally, you mentioned that you're still sort of looking at maybe doing something with PCCP when the opportunity arises. Was there any recovery in return from that business this half or is it still pretty subdued?

Speaker #8: Was there any recovery in return from that business ? This half , or is it still pretty subdued ? , .

Speaker #2: So two things . There was some downward , , valuation impacts in terms of the , the individual fund that we hold . That was the , that offset that Jackie mentioned broadly , the business itself , though , carries on very well .

Blair Vernon: Two things. There was some downward valuation impacts in terms of the individual fund.

Nigel Pittaway: Yeah.

Blair Vernon: we hold. CPA, that was that offset that Jackie mentioned. Broadly, the business itself, though, carries on very well. It's a very well-run business. Obviously, a strong payout. The management entity, which we have our stake in, 21 something%, is very strong and we will continue to work with the founders particularly on those realization opportunities for our stake.

Speaker #2: It's a very well run business . And so , yeah , and obviously , , a strong payout . And so the , the management entity , which we have our stake in 21 something percent , , is very strong .

Speaker #2: And we'll continue to work with the founders, particularly on those realization opportunities for our stake.

Speaker #8: Okay, thanks very much.

Nigel Pittaway: Okay, thanks very much.

Speaker #4: Thank you. Our next question comes from the line of Andrew Buncombe from Macquarie. Please ask your question, Andrew. Your line is open.

Operator: Thank you. Our next question comes from the line of Andrew Buncombe from Macquarie. Please ask your question. Andrew, your line is open.

Speaker #10: Hi . Thanks for the opportunity to ask questions and congratulations on the result . Just the first one from me . Just interested in how the board are thinking about doing an additional buyback , given that the stock is trading .

Andrew Buncombe: Hi, team. Thanks for the opportunity to ask questions, and congratulations on the result. Just the first one from me. Just interested in how the board are thinking about doing an additional buyback, given that the stock is trading so much above NTA. Do they have any hard and fast rules or philosophies about where they would be happy to go to? Thanks.

Speaker #10: So, much above NTA, do they have any hard and fast rules or philosophies about where they'd be happy to go to?

Speaker #10: Thanks

Speaker #2: Yeah . Thanks , Andrew . , yeah , obviously it was a significant point of conversation at the board . , and we have , , walked through management and board .

Blair Vernon: Yeah. Thanks, Andrew. Yeah, obviously it was a significant point of conversation at the board. We have walked through management and board, a range of sensitivities in terms of the value of that. Clearly, our announced buyback, I guess, reveals our approach, which is the price we're trading at. We continue to see positive impact in terms of that approach, and I think it's aligned with our approach in terms of the committed position with shareholders. The additional point to that, Andrew, being clearly, given our low franking credits, we're very sensitive to dividends, although we obviously have boosted that because we also respect the fact we've got a very wide retail shareholder base. We're looking to balance all those things. Yeah, we'll continue to watch that very carefully.

Speaker #2: , you know , a range of sensitivities in terms of , , the , you know , the value of that , , clearly our announced buyback , I guess , reveals our approach , which is , you know , at the price we're trading at , we continue to see , , in positive impact in terms of , , that approach .

Speaker #2: And I think it's aligned with our approach in terms of the committed position with shareholders , the , the , the additional point to that , Andrew being clearly given our low franking credits , we're very sensitive to , you know , dividend , although we obviously have boosted that because we also respect the fact we've got a very wide retail shareholder base .

Speaker #2: So we're looking to balance all those things. But yeah, we'll continue to watch that very carefully.

Speaker #10: Understood . And then the only other one from me was just in relation to controllable costs . As we go into FY 27 , I suppose in terms of thinking about the bridge , should we expect the further investment in the bank to continue into FY 27 , or does that fall away ?

Andrew Buncombe: Understood. The only other one from me was just in relation to controllable costs as we go into FY27. I suppose, in terms of thinking about the bridge, should we expect the further investment in the bank to continue into FY27 or does that fall away and then essentially help the controllable cost growth into 2027? Thanks.

Speaker #10: And then, essentially, help the controllable cost growth into 27? Thanks.

Speaker #2: Yeah . Thanks . , no , we are we are seeing more of a Bau style approach as we head into 27 as it relates to the bank .

Blair Vernon: Yeah, thanks. No, we are seeing more of a BAU style approach as we head into 2027 as relates to the bank. That pendulum swing we described in terms of the accelerating the transition and therefore looking to harvest those efficiency opportunities in the existing bank is critical to that. We want to work really hard on that through the H2, and that gives us confidence as we look to the 2027. As I mentioned in the presentation, clearly managing AI opportunities and containing the cost and harvesting some of those efficiencies is one of the key pieces of work we're gonna do in the H2, to be able to give us more confidence and give you some further clarity as we look to 2027.

Speaker #2: , and so , you know , that that pendulum swing we described in terms of the accelerating the transition and therefore looking to , you know , harvest those efficiency opportunities and the existing bank is critical to that .

Speaker #2: And so we want to, you know, work really hard on that through the second half. And that gives us confidence as we look into '27.

Speaker #2: And then , as I mentioned in the presentation , clearly managing , you know , AI opportunities and containing the cost and harvesting some of those efficiencies is one of the key pieces of work we're going to do in the second half .

Speaker #2: So, to be able to give us more confidence and give you some further clarity as we look into Q2 2027.

Speaker #10: That's it from me. Thank you.

Andrew Buncombe: That's it from me. Thank you.

Speaker #7: Thanks .

Blair Vernon: Thanks, Andrew.

Speaker #11: Thank you

Operator: Thank you. We will now take our next question from the line of Andrei Stadnik from RBC. Please ask your question, Andre. Your line is open.

Speaker #4: We will now take our next question from the line of Andre Stanley from RBC. Please ask your question. Andre, your line is open.

Speaker #12: Good morning Andre here from Royal Bank of Canada . Can I ask two questions , please ? , can I ask my first question ?

Andrei Stadnik: Good morning, Andre here from Royal Bank of Canada. Can I ask two questions, please? Can I ask my first question just around your distribution and marketing initiatives, in platforms and in super investments. How progressed are you with some of these initiatives? Because I think you might've been making some recent hires. Yeah, how progressed are you with your distribution and marketing initiatives there?

Speaker #12: Just around , , your distribution and marketing initiatives , , in platforms and in certain investments , like how progressed are you with some of these , initiatives ?

Speaker #12: Because I think you might have been , , making some recent highs . So yeah , how are you with your distribution and marketing initiatives there ?

Speaker #2: Yeah . , yeah . Thanks , Andre . , , frankly , pretty excited about those initiatives . I've in the first , you know , 90 days in the role , I've spent a substantial amount of time out in the field .

Blair Vernon: Yeah, thanks, Andre. Frankly, pretty excited about those initiatives. In the first 90 days in the role, I've spent a substantial amount of time out in the field, with Kristine Goodwin, who leads our sales teams across North, and with Edwina. I think I've seen more than 100 advisors through that period. Great work in the field from our teams, and continuing to grow and recruit. The momentum we've got in North and the offer that we have to go to market, further assists our recruitment of really high caliber candidates. We've got some more hires, in fact I was just corresponding with one this morning who's joining that team. So as we look in the H2, we continue to further strengthen that. We just made a key hire in our super investments business, Richard Millington, who will join us actually in a couple of weeks.

Speaker #2: , with Christine Goodwin , who leads our sales teams across North , , and with Edwina . , I think I've seen more than 100 advisors through that period .

Speaker #2: , great work in the field from our teams and continuing to grow and recruit and the momentum we've got in North and the offer that we have to go to market , , further assists our recruitment of really high calibre candidates .

Speaker #2: We've got some more hires just corresponding one this morning . Who's joining that team ? , as we , so as we look in the second half , we continue to further strengthen that .

Speaker #2: We've just made a key hire in our Super Investments business: Richard Millington, who will join actually in a couple of weeks.

Speaker #2: He's coming into a super investments business where there's a very significant pipeline of opportunities. I've been personally involved in a number of those pitches because we're absolutely focused on sales and growth, and that includes myself.

Blair Vernon: He's coming into a Superannuation & Investments business where there's a very significant pipeline of opportunities. I've been personally involved in a number of those pitches, because we're absolutely focused on sales and growth, and that includes myself, Edwina, Melinda, the whole team. Yeah, we're both seeing positive response, but also resourcing against that.

Speaker #2: , Edwina , Melinda , the whole , the whole team . So , , you know , we're both seeing positive response , but also , , resourcing , , against that

Speaker #12: Thank you . Look , my second question around costs , particularly controllable costs and super investments . So it looks like the controllable cost investments , you know , the annualized in about 181 , 85 , which is very similar platforms .

Andrei Stadnik: Thank you. Look, my second question around costs, particularly controllable costs and Superannuation & Investments. It looks like-

Andrei Stadnik: the controllable cost of Superannuation & Investments, they're annualizing about AUD 180, AUD 185, which is very similar to Platforms. Yet the AUM is about a third lower in Superannuation & Investments and we get the impression on the outset should be more of a cookie-cutter style business, maybe easier to run.

Speaker #12: And yet, the AUM is about a third lower in investments. And, you know, we get the impression at the outset that it should be more of a cookie-cutter style business.

Speaker #12: So, maybe it's easier to run. So, is there a substantial cost that you need to consider, in terms of investments?

Blair Vernon: Yeah.

Andrei Stadnik: Is there a substantial cost opportunity in terms of Superannuation & Investments?

Speaker #2: , yeah . Great , great spot . , yes . That's an area where we see further , , potential in terms of cost saving , operating leverage .

Blair Vernon: Yeah. Great spot. Yes, that's an area where we see further potential in terms of cost save and operating leverage. That tail of our simplification spend, which you saw expense in the H1, is reflective of the final stage of our simplification program, which is what we call super modernization. We've got a brand new portal and market, the app I'm literally testing right now. The team let me test, they love my feedback. We will roll that imminently. That combines a whole bunch of straight-through processing in the back end of that. That is part of where we see the opportunity, both in terms of customer experience, but also operating leverage for us as we look into FY27.

Speaker #2: We are at that tail of our simplification spend, which you saw as an expense in the first half. It is reflective of the final stage of our simplification program, which is what we call super modernization.

Speaker #2: So we've got a brand new portal in market . The app . I'm literally testing right now . , that team , let me test .

Speaker #2: They love my feedback . , and we will roll that , , imminently that , , combines a whole bunch of straight through processing in the back end of that .

Speaker #2: That is part of where we see the opportunity, both in terms of customer experience but also operating leverage for us as we look into FY27.

Speaker #12: Thank you so much .

Andrei Stadnik: Thanks so much.

Speaker #4: Thank you Next , we have follow up questions from the line of Siddharth Parameswaran from JP Morgan . Please go ahead . Siddharth .

Operator: Thank you. Next we have follow-up questions from the line of Siddharth Parameswaran from JPMorgan. Please go ahead, Siddharth.

Speaker #1: Sorry , I just just two quick follow ups . One is just on the bank . I , I'm actually struggling to understand , , what's happening there on the securitization side .

Siddharth Parameswaran: Sorry, just two quick follow-ups. One is just on the bank. I'm actually struggling to understand what's happening there on the securitization side. It seems like from your answers to my previous question, there seems to be a drag on your NIM of nine basis points from your securitization efforts. From what I can tell, you've released about AUD 80 million of capital. It seems like a very poor return and you're planning to do more of this. I'm just wondering, am I interpreting this correctly? Why are you doing more of it? It seems like the ROE would've been nine, sorry, the NIM would've been nine basis points higher if you hadn't done it. Yeah, we wouldn't have AUD 80 million of capital, but that's not that much in the scheme of nine basis points on 23 billion of assets.

Speaker #1: It seems like from... From what? From your answers to my previous question, there seems to be a drag on your NIM of nine basis points from your securitization efforts.

Speaker #1: And from what I can tell , it's you've released about $80 million of capital . It seems like a very poor return . And you're planning to do more of this .

Speaker #1: I'm just wondering , why am I am I interpreting this correctly ? And why are you doing more of it ? It seems like , you know , the ROE would have been nine .

Speaker #1: Sorry . Nim would have been nine basis points higher if you hadn't done it . And yeah , there'd be I mean , we wouldn't have $80 million of capital , but that's , you know , that's , that's not that much in the scheme of , , you know , nine basis points and 23 billion of assets

Speaker #2: Thanks . Thanks . I might , , I might get , I've got , I've got Jason here as well . Jason . Of our treasurer .

Blair Vernon: Thanks. I've got Jason here as well, Jason Barness, our Group Treasurer. I might get him to just answer that because there is a nuance in there, I think.

Speaker #2: So I might get him to just answer that because there is , there is a , a nuance in there . I think

Speaker #5: Yeah . Thanks , Blair . Thanks . , well , I guess if you refer to slide 39 , what we've tried to do there is really break out the Nim walk for the bank .

Jason Bounass: Thanks, Blair. Thanks, Sid. I guess, Sid, if you refer to slide 39, what we've tried to do there is really break out the NIM walk for the bank. When you start thinking about your question, there's a couple of things playing into that. As Jackie touched on, we're seeing growth in the Go business, improvement in deposit margins through Go, and that's fed into that 12 basis point improvement. Equally, within that 12 basis point pickup, you're also seeing the closure of our legacy deposit franchise, as well as our lessening reliance on retail deposits. When you think about those three factors being I'm actually raising less retail deposits, I'm raising more Go deposits, and I'm also utilizing securitization as a capital and funding tool. It's really the net impact of all of those which gives you the 3 basis point improvement.

Jason Bounassif: Thanks, Blair. Thanks, Sid. I guess, Sid, if you refer to slide 39, what we've tried to do there is really break out the NIM walk for the bank. When you start thinking about your question, there's a couple of things playing into that. As Jackie touched on, we're seeing growth in the Go business, improvement in deposit margins through Go, and that's fed into that 12 basis point improvement. Equally, within that 12 basis point pickup, you're also seeing the closure of our legacy deposit franchise, as well as our lessening reliance on retail deposits. When you think about those three factors being I'm actually raising less retail deposits, I'm raising more Go deposits, and I'm also utilizing securitization as a capital and funding tool. It's really the net impact of all of those which gives you the 3 basis point improvement.

Speaker #5: , you know , when you sort of think about your question , there's a couple of things playing into that , , as Jackie touched on , , we're seeing growth in the go business , improvement in deposit margins through go .

Speaker #5: , and that's fed into that 12 basis point improvement equally within that 12 basis point pick up . You will also see the closure of our legacy deposit franchise , as well as our lessening reliance on retail deposits .

Speaker #5: And so when you think about those three factors being: I'm actually raising fewer retail deposits, I'm raising more GO deposits, and I'm also utilizing securitization as a capital and funding tool.

Speaker #5: It's really the net impact of all of those , which gives you the three basis point improvement to sort of break it in isolation and say , securitizations , resulting in a nine basis point decrease in Nim doesn't paint the whole picture because what's enabling you to do is , , lessen your reliance on total retail deposits and give go that ability to grow .

Jason Bounass: To sort of break it in isolation and say securitization's resulting in a 9 basis point decrease in NIM doesn't paint the whole picture. What it's enabling you to do is lessen your reliance on total retail deposits and give Go that ability to grow. It's a net of everything. You can't sort of strip them individually.

Jason Bounassif: To sort of break it in isolation and say securitization's resulting in a 9 basis point decrease in NIM doesn't paint the whole picture. What it's enabling you to do is lessen your reliance on total retail deposits and give Go that ability to grow. It's a net of everything. You can't sort of strip them individually.

Speaker #5: So it's a net of everything. You can't sort of strip them individually.

Speaker #1: Okay . , I'm not sure I fully understand , but I'll , I'll leave it . , okay . , maybe just my , my second question is just around .

Siddharth Parameswaran: I'm not sure I fully understand, but I'll leave it. Maybe just my second question is just around, it goes back to my original question, just on the CLPC business. The H1 2026 earnings growth on H1 2025 for the combined partnerships in China was over 100%. You indicated there's definitely something going on the revenue margin side because of mix in FY25 versus FY24, you said that there was some stability after that. The earnings growth seems to be much stronger in H1 2026 versus H1 2025. I was just hoping you could help us understand, Well, do you get a similar breakdown of revenues and expenses for H1 2026? That you could just help us understand to make sure it's clear to us whether H1 2026 is the go forward.

Speaker #1: , just it goes back to my original question just on the LPC , , the LPC business . , the , the , the first half 26 earnings growth on first half , 25 .

Speaker #1: For the combined partnerships in China, it was over 100%. And you indicated there is definitely something going on on the revenue margin side because of mix in FY25 versus FY24.

Speaker #1: But you said that there was some stability after that, but the earnings growth seems to be much stronger in the first half—'26 versus the first half of '25.

Speaker #1: And I was just hoping you could help us understand. Well, do you get a similar breakdown of revenues and expenses for first half '26, so that you can just help us understand to make sure it's clear to us whether first half '26 is the go-forward, because it just seems like there's a step up again.

Siddharth Parameswaran: Yeah.

Siddharth Parameswaran: It just seems like there's a step up again. I'm just trying to make sure I understand. I'm not able to map all your.

Speaker #1: So I'm just trying to make sure I understand. I'm not able to map all your ...

Speaker #2: Yeah, I'll get Adrian to just give you a— But for clarity, obviously there are some timing differences in terms of the way all our results come through China.

Blair Vernon: Yeah. I'll get Adrian to just give you. For clarity, obviously there is some timing differences in terms of the way all our results come through from China. There is a lag effect, we're obviously trying to surface more of that reporting given the significance. Adrian, do you want to just make a comment on the H1?

Speaker #2: So there is a lag effect , but we're obviously trying to , surface more of that reporting given the significance . But Adrian , do you want to make a comment on the first half .

Speaker #2: Yes .

Adrian Ryan: Yes. Sure. As we receive the finances from China. I think the point to note is when you look at what we presented in the script American field for, if you look at revenue over AUM and the tails provided, that's a good indicator of the growth and it's also a good indicator of the mix change we're referring to as well. If we refer to slide page 30, that would kind of give you a good view of the momentum and the mix changes the business is experiencing, particularly when you look at revenue over average AUM.

Speaker #7: Sir . We received the financials from China . I think I think the point to note is when you look at what we presented in appealed for , if you look at revenue over AUM in the tables provided , that's a good indicator of the growth .

Speaker #7: And it's also a good indicator of the mix change . We're going to as well . So if I refer you to slide page 30 that we're going to give you a good view of the momentum and the mix changes .

Speaker #7: Businesses experiencing—particularly when you look at revenue over average AUM.

Speaker #1: Okay . Thank you .

Siddharth Parameswaran: Okay. Thank you.

Speaker #4: Thank you . Our next follow up question comes from the line of Freya Kong from Bank of America . Please go ahead . Freya , your line is open .

Operator: Thank you. Our next follow-up question comes from the line of Freya Kong from Bank of America. Please go ahead, Freya, your line is open.

Speaker #6: Hi , thanks for taking the follow ups . Just on a platform flow . Some of your peers called out acquired a June because of budget uncertainty .

Freya Kong: Hi, thanks for taking the follow-ups. Just on our platform flow, some of your peers called out a quieter June because of budget uncertainty. Did you see anything similar in the period that could have depressed your June performance?

Speaker #6: Did you see anything similar in the period that could have depressed your June performance?

Speaker #2: Yeah . , thanks , bro . , no , frankly , we didn't , , to the same extent that I've seen others comment .

Blair Vernon: Thanks, Freya. Frankly, we didn't to the same extent that I've seen others comment. I think part of that is because we obviously have a significant weighting towards retirement and superannuation, 80% of the book is in that space. Frankly, that broadly looked to be more positively experienced in terms of the outcomes from the budget. We are seeing continuation. If you think about the client base we're serving in North, and we're being quite clear about this. The clear target is mass affluent and Australian saving for retirement and taking quality financial advice to do that. They are continuing to save. The setting's set for that, and there's broadly a positive direction towards saving and super.

Speaker #2: And I think part of that is because we obviously have a significant weighting towards retirement and superannuation , 80% of the book is , you know , in that space .

Speaker #2: And frankly , that broadly looked to be , , more positively experienced in terms of the outcomes from the budget , so we are seeing a continuation , if you think about the client base we're serving in North and we're being quite clear about this , you know , the clear target is mass affluent Australians saving for retirement and taking quality financial advice .

Speaker #2: , to do that , they , are they are continuing to save , , the settings set for that . And there's , you know , broadly a positive direction towards saving and super .

Speaker #6: Great . Thanks . And just on the Ebit margin for platform , which has continued to improve with scalability , , some of your peers are also operating , I guess closer to 50% .

Freya Kong: Great. Thanks. Just on the EBIT margin for platform, which has continued to improve with scalability. Some of your peers are also operating, I guess, closer to 50%. Do you think this is achievable for North in the medium term?

Speaker #6: Do you think this is achievable for North in the medium term?

Speaker #2: , well , I mean , obviously the improvement we're seeing is pleasing and that's the right trajectory . We certainly expect that a number of the initiatives we have , , in , in train already will continue to give us additional improvement in operating leverage , not just volume growth , but obviously some , , components we're building that we think will change some of our , some of our cost mix .

Blair Vernon: Well, obviously the improvement we're seeing is pleasing, and that's the right trajectory. We certainly expect that a number of the initiatives we have in train already will continue to give us additional improvement in operating leverage, not just volume growth, but obviously some components we're building that we think will change some of our cost mix. The goal is to continue to expand that EBIT margin.

Speaker #2: And so, you know, the goal is to continue to expand that EBIT margin.

Speaker #6: Okay , thanks . And then just on the AI implement launch in North , when is this happening ? And where are the cost captured ?

Freya Kong: Okay, thanks. Just on the AI Implement launch in North, when is this happening?

Blair Vernon: Yep.

Freya Kong: Where are the costs captured? Is it variable, controllable, and is it within guidance already?

Speaker #6: Is the variable controllable, and is it already within guidance?

Speaker #2: Yeah, thanks. I implemented it, and the AI Workbench is already out there in terms of North Interactive. I implemented it in the pilot already.

Blair Vernon: Yeah, thanks. AI Implementers and the AI workbench is already out there in terms of North Interactive. AI Implement is in pilot already. Certainly speaking to a couple of advisors in the last few weeks when I was out and about, they're pretty excited about that. It gives them a very substantial efficiency leverage that is engineered right into the heart of North. Part of the approach there was to very carefully manage the way that emerges in terms of costs. That'll all be within our controllable costs for North.

Speaker #2: Certainly, speaking to a couple of advisors in the last few weeks when I was out and about, they're pretty excited about that.

Speaker #2: It gives them a very substantial , , efficiency leverage , , that is engineered right into the heart of North , , and so part of the approach there was to very carefully manage , you know , the way that that emerges in terms of costs , that'll all be within our controllable costs .

Speaker #2: , for North .

Speaker #6: And is there any revenue upside from this?

Freya Kong: Is there any revenue upside from this?

Speaker #2: Yeah . Well , I mean , we're not there's no , we're not charging for that . So our approach to the way we deploy functionality for North is , you know , that's , that's the platform deliverable .

Blair Vernon: Yeah. Well, we're not charging for that. Our approach to the way we deploy functionality for North is that's the platform deliverable, and we're not sort of adding on things. The upside for us is obviously the more efficiency we could create for advisors, quite frankly, the more time that they can spend with clients and new clients. There is clearly a backlog of clients wanting to see advisors to get more advice. Our ambition is deliver more functionality, including through AI, but a whole range of other changes as well, to create more capacity for advisors to substantially grow the number of clients they see. Then our belief is we get to participate in some of their benefits.

Speaker #2: And we're not sort of adding on things that the upside for us is obviously the , the more efficiency we could create for advisors , quite frankly , the more time they can spend with clients and new clients .

Speaker #2: And there is clearly a backlog of clients wanting to see advisors get more advice . So our , our , you , our ambition is to deliver more functionality , including through AI , but a whole range of other changes as well to create more capacity for advisors to substantially grow the number of clients they see .

Speaker #2: And then our belief is, you know, we get to participate in some of that benefit.

Speaker #6: Thanks . That makes sense

Freya Kong: Thanks. That makes sense.

Speaker #4: I have no further questions. Thank you all very much for your questions. I'll now turn the conference back to Blair for closing comments.

Operator: I am showing no further questions. Thank you all very much for your questions. I'll now turn the conference back to Blair for closing comments.

Speaker #2: Thanks , everyone for attending . Appreciate . We've gone a little over our allotted time . Appreciate . Sort of . As always , there's quite a lot in that result .

Blair Vernon: Thanks everyone for attending. Appreciate we've gone a little over our allotted time. I appreciate sort of as always, there's quite a lot in that result to absorb. I know we've got follow-ups with a number of you over the coming days, so look forward to sharing more of that. Enjoy the rest of your day.

Speaker #2: , to absorb . , I know we've got follow ups with a number of you over coming days to look forward to sharing more of that .

Speaker #2: Enjoy the rest of your day.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.