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50% profit loss for AMP Wealth Management

  • August 08 2019
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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”.

AMP

50% profit loss for AMP Wealth Management

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  • August 08 2019
  • Share

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”.

AMP

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.

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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.

50% profit loss for AMP Wealth Management
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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