Citi sees potential future share buybacks by Australia's AMP, retains 'buy'

AMP

03/06/2026 23:03

** Citi sees potential for future share buybacks by Australia's AMP AMP.AX on the back of its growing emphasis on capital efficiency and incentives tied to earnings-per-share growth
** Brokerage retains a 'buy' rating and target price of A$1.80
** AMP holds more high-risk assets than its peers and could potentially free up an extra A$300 million ($213.87 million) in capital through more securitized funding, though this may reduce its net interest margin, Citi says
** However, brokerage sees a gradual capital release of A$50 million to A$100 million annually, which could limit the amount of NIM pressure
** Sees nearer-term scope for AMP to enhance the bank's capital efficiency and returns despite traditional banks continuing to hinder its overall return on capital
** Eight of nine analysts rate the stock "buy" or higher, and one "hold"; their median price target is A$1.73, as per data compiled by LSEG
** Shares down ~18% YTD, as of last close
     
($1 = 1.4027 Australian dollars)

 (Reporting by Anjali Singh in Bengaluru)
 ((anjali.singh2@thomsonreuters.com;))