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MPA shares slid Thursday after the annual accounts showed investors fled the troubled Australian wealth manager last year as part of a major public survey of the country's financial sector.
The Sydney-based company announced net outflows of its Wealth Management Unit of A $ 3.9 billion ($ 2.8 billion), a sharp contraction against $ 931 million in inflows last year.
This reflected the "impact of the reputation" of the survey, especially in the second half, as well as "the advisors' attention to customer loyalty rather than new business," AMP said in a financial report. Thursday.
The Royal Commission's investigation has made the MPA one of the worst victims of last year, after a wave of damaging revelations, including the fact that it charged fees to deceased customers and lied to regulators . Members of the public have called for Craig Meller's scalp as CEO and President, Catherine Brenner.
Australia's largest wealth manager announced underlying earnings of A $ 680 million, down 35% from A $ 1.04 billion in 2017, but partially offset by earnings growth of its AMP Capital and AMP Bank divisions. However, customer resolution costs increased to A $ 469 million, up from A $ 157 million in the previous twelve months.
Francesco De Ferrari, Director General of the MPA, said that the royal investigation had been "confronted" and that the GPA would continue in 2019 to strengthen "risk management, governance and controls".
The action AMP fell 6.6% Thursday before recovering some of these losses, a decline of 3.9% on the day. The stock is more than 50% below its level of early 2018.
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