A Morningstar analysis of AMP said yesterday's result of a $382 million first-half profit (down slightly on last year) was "surprisingly strong".
"AMP is reaping the benefits of a well-executed strategy, rising investment markets, and improving investor sentiment," said the report.
On the downside, the earnings outlook for AMP's wealth management business is hampered by a continuing decline in margins, according to Morningstar.
"[AMP's margins are] guided to narrow yet another 3.5 per cent to 4.5 per cent per year to 2017 as the MySuper implementation gains traction," said the report.
Morningstar described AMP's life and income protection insurance businesses as "troublesome", but remarked they had both reported "surprising" increases in earnings in the half.
But that said, AMP boasts the largest number of financial advisers in Australia, with a total of 3,860 as at June 2014, said Morningstar.
"Adviser numbers increased modestly during the half, up 58 from December 2013 and we expect similar growth in adviser numbers going forward," said the report.
"AMP is one of our preferred wealth managers due to its vertically-integrated business model, high market shares, strong brand, large sticky customer base, low cost base and the largest financial planner network," said Morningstar.
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