In AMP’s annual report released on Wednesday, Mr De Ferrari said following the announcement of the controversial transformation strategy in late 2019, the group had aimed to “create a simpler and client-led business which would deliver growth to shareholders again”.
“In our first year of that strategy in 2020, we achieved 90 per cent of the objectives we set,” he said.
“We completed the sale of AMP Life and took the decision to retain our New Zealand wealth management business and grow it. We accelerated the simplification of our superannuation business and pushed forward on a challenging reshape of our financial advice business.
“We have also set our bank up for future growth through the successful renovation of our core banking platform, and we continued to improve our wealth business and see growth in our North platform.”
Mr De Ferrari said 2021 represented “an opportunity for us to take our company forward with the same commitment, hard work and resilience shown by our people in 2020”.
“Australian wealth management continued to consolidate and strengthen practices to improve the productivity and quality of advice,” he said.
“While we face ongoing headwinds in wealth management in Australia, we are responding and we are focusing on driving earnings growth in both the bank and the platforms business.”
AMP said 75 per cent of its “advice reshape” program had completed in 2020, with the rest due for completion in 2021.
“We will deliver technology solutions to enable practice efficiencies, increase advice accessibility by uplifting our phone-based advice capabilities and continue our support for our adviser network as we complete client migration to annual advice and service agreements,” the company said.
AMP said around 85,000 clients had been transitioned to annual agreements so far.
The group addressed its declining adviser numbers as positive for its overall wealth strategy, stating that the 37 per cent reduction in practice numbers to 595 and 26 per cent reduction in adviser numbers to 1,573 was part of the “move towards a more professional, compliant and productive network”.
AMP also flagged its remediation program was 80 per cent complete by the end of the 2020 year, with a total program spend of $405 million to date and an additional provision of $68 million made in 2020 relating to “recognition of additional lost earnings and other legacy advice matters”.
However, despite the apparent success of AMP’s transformation to date, remuneration committee chair Michael Sammells said the company’s performance “remains significantly below plan”, and short and long-term incentive payments for Mr De Ferrari and key management personnel were not appropriate for the 2020 year.
“Remuneration outcomes for our key executives have been adjusted to align with the shareholder experience,” he said.
yep the share market and Ares agree with you
And then he sells a portion of the better performing part of the business
Lucky that bloke isnt managing your money
It’s the time of year that AMP employees are usually getting their bonuses paid and their new salary starts. I gather the local bars and restaurants will be heaving with AMP employees stimulating their local economies.
Mr De Ferrari is trying to polish a turd. As a CEO you can’t get any more delusional!
They sold AMP Life because they were too incompetent to run it, no one would buy the NZ business so they decided to retain it which is the only option when you run it that badly no one wants it, the bank is a dog and will never be anything other than a niche player competing on price, North is losing market share and AMP Capital’s most important employee is concerned about his limp dick but you promoted him anyway.
The share price is a much better indicator of how AMP are travelling that Fiat’s self congratulatory rubbish.
“wealth giant completing 90 per cent of its transformation strategy”
Well, lets see what has been achieved.
Partially Achieved
“create a simpler and client-led business….” yes, well on the way.
Yet to Achieve
“deliver growth to shareholders again”. Good luck with that.
Well the Diversity & Inclusion and Wellness programs seem to be going quite successfully though.
Shame it is at the expense of all the shareholders, but those programs are certainly “transforming” the company.
Those would be the one’s that resulted in a bloke getting a bonus for sexually harassing a staff member from another country? It’s impressive that you fly someone in to hit on them. I think their programs need to see something happen rather than just words for them to be considered a success.
At some 2,400 advisers and some $480 million that is about $200k per adviser or 1/5 the rate CBA and NAB remediation costs per adviser. If their adviser numbers were larger, the amount is even smaller.
Love, just love the double meaning of the word “compliant” here.
A past master of dead horse flogging and low bar setting. AMP is a corporate disaster and utterly faithless to their adviser force.
When no one congratulates you then you have no choice than to congratulate yourself.
AMP / Ferrari are delusional if they think they have achieved anything. The media spin is exactly that spin. The business was up for sale and no one would buy it. If so many great things have happened since 2019 why wasn’t there more bidders and an actual sale? How about the share price, that would be booming as well? Just another lot of executives in damage control trying to get their bonuses and move on to the next high paying job.