AMP has posted an underlying NPAT of $495m down 7% and higher than a Bloomberg consensus forecast of $487m. The wealth management firm has vowed to defend five class actions it has against its name. Earnings and inflows were hurt by these scandals resulting in remediation provisions and costs that dragged down the bottom line. Earnings also fell in its New Zealand financial services division.
Last month, AMP provided guidance that underlying profit would print at $490m to $500m for the six months ended June 30.
Here are dot points from the result:
- 1H underlying profit of $495m
- Strong growth in AMP Bank with earnings up 20% on 1H 17.
- Continued momentum in AMP Capital
- Operating earnings up 2% on 1H 17 during period of investment in real assets capability and international expansion.
- Australian wealth management resilient in a challenging environment
- Operating earnings increased 6% to $204m
- Assets under management increased 6% to $132bn.
- Surplus capital of $1.8bn above minimum regulatory requirements.
- Interim dividend of 10c, franked to 50%.
Total assets under management and administration amounted to $260bn at June 30, higher than $257bn six months earlier. Similar to CBA, AMP has had a tough ride this year becoming the biggest casualty so far of the Royal Banking Commission. It lost its chairman Catherine Brenner, CEO Craig Meller and three board directors in 2018.