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
ANZ sued for allegedly misleading customers
The corporate regulator has commenced civil proceedings in Federal Court. ...Read more

Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure...Read more

Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. ...Read more

Banking
Modernisation of direct debit system suffers setback
According to the Reserve Bank (RBA), several major banks will not be able to meet the current timeline for the launch of the PayTo service. ...Read more

Banking
Australians' trust in digital providers has decreased in last five years
Australians have little trust in organisations keeping their information secure, but the financial services industry still sits atop the list. ...Read more

Banking
Commonwealth Bank chairman to retire in August
The Commonwealth Bank (CBA) board has announced a successor. ...Read more

Banking
Westpac responds to $113m penalty
The big four bank has responded to the penalty handed down last week. ...Read more

Banking
Westpac ordered to pay $113m for ‘widespread compliance failures’
Westpac has been ordered to pay penalties in the amount of $113 million for widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Banking
ANZ sued for allegedly misleading customers
The corporate regulator has commenced civil proceedings in Federal Court. ...Read more

Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure...Read more

Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. ...Read more

Banking
Modernisation of direct debit system suffers setback
According to the Reserve Bank (RBA), several major banks will not be able to meet the current timeline for the launch of the PayTo service. ...Read more

Banking
Australians' trust in digital providers has decreased in last five years
Australians have little trust in organisations keeping their information secure, but the financial services industry still sits atop the list. ...Read more

Banking
Commonwealth Bank chairman to retire in August
The Commonwealth Bank (CBA) board has announced a successor. ...Read more

Banking
Westpac responds to $113m penalty
The big four bank has responded to the penalty handed down last week. ...Read more

Banking
Westpac ordered to pay $113m for ‘widespread compliance failures’
Westpac has been ordered to pay penalties in the amount of $113 million for widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management ...Read more