Borrow
50% profit loss for AMP Wealth Management
AMP Wealth Management has reported operating earnings of just over $100 million in the first half of 2019, despite drastic plans for a reinvention aimed at “helping clients realise their ambitions”.
50% profit loss for AMP Wealth Management
AMP Wealth Management has reported operating earnings of just over $100 million in the first half of 2019, despite drastic plans for a reinvention aimed at “helping clients realise their ambitions”.
The company had reported operating earnings for AMP Wealth Management as being just $103 million in the first half of 2019, which was a 49.5 per cent decrease on the same period in 2018.
Operating earnings were reportedly impacted by margin compression from MySuper fee reductions, advisers moving clients to more contemporary solutions, as well as through the removal of earnings transfer from AMP Life.
Alongside the announcement of its 2019 interim results, AMP has said it will be implementing a new three-year strategy in a move towards simplified and automated client advice.
The shift will see a change to the wealth giant’s focus, with new emphasis on direct-to-client channels and digital solutions.
AMP Bank solutions will also further be integrated with the wealth management suite, in a bid to target double-digit earnings growth.
According to the figures given, the new strategy will not be cheap, with AMP anticipating the changes to cost upwards of a billion dollars.
Despite this, the cost-reduction program is expected to achieve $300 million in annual run-rate savings by the 2022 financial year.
To fund the program, AMP will be utilising proceeds from its fully underwritten $650-million capital raise, as well as the funds from AMP Life’s completed sale.
About the author
About the author
Banking
Westpac hit with biggest fine in corporate history
Australian banking and financial services giant Westpac has reached an agreement with AUSTRAC to pay $1.3 billion for breaching anti-money laundering and counter-terrorism financing laws. ...Read more
Banking
6 ways to know you need a new bank
Unhappy with your current bank? Here’s how to know if you need to make a change. ...Read more
Banking
The banks beating the big 4 when it comes to customer satisfaction
Midsize banks are the biggest winners in a new survey of bank customer satisfaction. ...Read more
Banking
‘There’s no shame in deferring payments’
Deferring mortgage repayments is “a lesser evil” than having to sell property in the current market if you can hold off, a mortgage broker has advised. ...Read more
Banking
Standing on the shoulder of giants: How Australia’s fintechs can tap into open source
Australia has developed a vibrant fintech scene, which, in one year alone, grew by a staggering 37 per cent. The surge has ushered in a new era of financial products and services, from fully online ho...Read more
Banking
Billion-dollar bank blowout for fees for no service
To date, six of Australia’s largest financial institutions have reported a need to return more than $1 billion in compensation to customers who suffered as a result of fees for no service or non-com...Read more
Banking
Are bank branches becoming a thing of the past?
Banking may never be the same post-pandemic, with a new survey showing Australians have made some pretty drastic changes to the way they use and move money. ...Read more
Banking
Banks to extend COVID-19 loan deferrals beyond ‘September cliff’
Australia’s banks will now extend loan deferrals for another four months for customers who have been impacted by COVID-19 pandemic, as creditors try to avoid the September cliff. ...Read more
Banking
Westpac hit with biggest fine in corporate history
Australian banking and financial services giant Westpac has reached an agreement with AUSTRAC to pay $1.3 billion for breaching anti-money laundering and counter-terrorism financing laws. ...Read more
Banking
6 ways to know you need a new bank
Unhappy with your current bank? Here’s how to know if you need to make a change. ...Read more
Banking
The banks beating the big 4 when it comes to customer satisfaction
Midsize banks are the biggest winners in a new survey of bank customer satisfaction. ...Read more
Banking
‘There’s no shame in deferring payments’
Deferring mortgage repayments is “a lesser evil” than having to sell property in the current market if you can hold off, a mortgage broker has advised. ...Read more
Banking
Standing on the shoulder of giants: How Australia’s fintechs can tap into open source
Australia has developed a vibrant fintech scene, which, in one year alone, grew by a staggering 37 per cent. The surge has ushered in a new era of financial products and services, from fully online ho...Read more
Banking
Billion-dollar bank blowout for fees for no service
To date, six of Australia’s largest financial institutions have reported a need to return more than $1 billion in compensation to customers who suffered as a result of fees for no service or non-com...Read more
Banking
Are bank branches becoming a thing of the past?
Banking may never be the same post-pandemic, with a new survey showing Australians have made some pretty drastic changes to the way they use and move money. ...Read more
Banking
Banks to extend COVID-19 loan deferrals beyond ‘September cliff’
Australia’s banks will now extend loan deferrals for another four months for customers who have been impacted by COVID-19 pandemic, as creditors try to avoid the September cliff. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
