AMP announces drop in attributable profit and withholds dividend

Aug 12 (Reuters) – Australia’s AMP Ltd (AMP.AX) said on Thursday that its first-half profit fell by more than a quarter as profits from AMP Capital and Australia’s wealth management divisions fell. affected.

The wealth manager said attributable profit for the six-month period ended June 30 fell more than 28% to A $ 146 million (A $ 107.66 million), from A $ 203 million reported he a year ago, and withheld any dividend.

Australia’s flagship wealth management division also reported A $ 2.7 billion cash outflow, an improvement from the A $ 4 billion reported last year in the absence of some one-time costs from of this time.

The 172-year-old company has been embroiled in a string of scandals surrounding its practices and corporate culture, the most recent being a lawsuit for charging retirees “fees for no service” even as it tries to divest itself and simplify its portfolio. Read more

AMP has announced that it will review dividend payment, as well as its capital management strategy, after finalizing the split of AMP Capital’s Private Markets business, scheduled for the first half of 2022.

In addition to the demerger of the Capital Private Markets business, AMP is also preparing to sell its global equity and fixed income business to Macquarie Group (MQG.AX).

The company added that it was on track to achieve A $ 300 million in annual cost savings by fiscal 2022.

($ 1 = 1.3561 Australian dollar)

Reporting by Soumyajit Saha and Arundhati Dutta in Bengaluru; Editing by Shailesh Kuber and Rashmi Aich

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