AMP revenue nearly halves on advice business sale, | Australian Markets
The associated fee of simplifying AMP’s wealth management and banking companies has slashed income — and a payout to shareholders.
AMP on Friday reported statutory internet revenue had plunged 43 per cent for the complete financial yr to the top of December to $150 million.
The news despatched its shares down 12 per cent after the open to $1.54.
It blamed the autumn on business simplification spending and the loss on the sale of its advice business, whereas additionally noting the earlier yr’s consequence additionally included a gain on the sale of AMP Capital and SuperConcepts.
Group underlying internet revenue was 15.1 per cent increased to $236m. AMP Financial institution was an underachiever, with underlying internet revenue dropping 22.6 per cent to $72m as a result of of ongoing management of volumes and margins whereas it developed its new digital bank.
AMP’s superannuation and investments business returned a 26.4 per cent rise in underlying internet revenue of $67m, reflecting optimistic market situations, decreased variable prices and improved cashflows.
It declared a closing dividend of 1¢ a share, 20 per cent franked, taking the full-year dividend to three¢ — down from 4.5¢ the earlier yr.
Chief government Alexis George stated AMP was building optimistic efficiency momentum and remained centered on growth.
“We sold and transitioned the advice business, hit cost targets and completed our $1.1 billion capital return program,” Mr George stated.
“Our wealth businesses are competing strongly in their chosen markets, driving positive performance, and we’re launching new offers including digital advice.
“We saw improving trends in AMP Bank in the second half of the year, including a return to growth in the mortgage book as previously indicated. We continue to prioritise margins in a competitive environment, and this month’s launch of our new digital bank is an important way to start to address the funding and revenue mix.”
AMP launched its small business and client digital bank this month, with 11,600 early signal ups forward of its release.
General prices have been down 6.1 per cent to $648m.
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