Reporting its first-half results on Thursday, AMP said it had recorded a statutory net profit after tax of $146 million, down from $203 million in the first half of 2020.
Both AMP Capital and the wealth management arm of AMP suffered over the first half, recording 18 per cent and 17 per cent decreases respectively in underlying net profit after tax.
However taking into account the adjustment from the sale of AMP Life in 2020, the group’s overall underlying profit recorded an increase of 57 per cent to $181 million, up from $115 million in the first half of 2020.
The wealth giant’s board said it would “maintain a conservative approach” until the demerger of its private markets business and “future strategies” were finalised, opting not to declare an interim dividend for 2021.
AMP said it had completed all file reviews for its customer remediation program and would accelerate customer refunds in the third quarter, and expected to complete the demerger of AMP Capital in the first half of 2022.
New chief executive Alexis George said she was “pleased” to have joined AMP at such an “important time” for the business.
“Our business has had a stronger first half financially, we have demonstrated our commitment to deliver our strategic priorities of reshaping and simplifying the business and focusing AMP Capital on private markets,” Ms George said.
“We are starting to see some positive signs of growth and innovation, particularly in our bank and platforms businesses where we are introducing new services that our clients want.”
She added that the private markets demerger would be “a core priority” in the months ahead.
Underlying NPAT increaseing while actual profit decreases and AUM continues to run for the door.
Guaranteed all the top execs still go their bonuses.
A profit reduction comes as no surprise.
Death knoll ringing. A once mighty insto in its death throes, brought about by an inept self-interested leadership losing touch with their distribution force.
This is hilarious and expected!
I am a AMPFP planner, and in the past 2 years, all business that I have being writing, has all been non AMP related or aligned products. They burnt myself and many, many others with the BOLR changes without an exit time frame runaway, so why care for them? – I hope that they bleed to death…..
We can now ourselves and OUR clients away from them at year’s end and many planners I have spoken to, are keen to do this, either through next year, or once the confirmation of the law suit for the reimbursement of the lost BOLR is confirmed as dead and buried…. No one Trusts them now – No matter who is put in place for the adviser’s network. And they wont win back any trust continuing on the way they are going…..
Another Australian Icon – AMP RIP.
This was hard to read. Very sad indeed. What is “without an exit time frame runaway”? Also what concerns me is “We can now ourselves and OUR clients away from them…” This makes no sense. Also why the capital in this sentence (which I’m giving you the benefit of the doubt when using the word sentence), “No one Trusts them now. I’m thinking FASEA should now include a basic grammar and syntax component. I’m shocked. Very sad basic communication skills are not part of the sector.
This business seems to have eaten itself alive! AMP destroyed its image with customers, demolished its reputation in the advice community and handled sexual harassment complaints poorly. The chickens have come home to roost and the shareholders are the ones to pay while the executives who did the damage have all walked away.
Exactly what they deserve….feel for the shareholders as there does not seem to be any chance they will improve results based on outflows.