SYDNEY, AAP – AMP reported a $252 million loss in its full year results, and will not pay a final dividend, as the fallout of a wide-ranging misconduct inquiry continues to weigh on its performance.
The company, one of Australia’s oldest financial institutions, recorded $5.2 billion in net cash outflows from its flagship wealth management business after clients pulled mandates in the 2021 calendar year.
AMP’s accounts noted, however, that there had been a reduction in the pace of withdrawals, and its business profited from improved investment markets. The wealth manager’s total assets under management grew as a result.
The financial firm also reduced costs, saving it $140 million, while its banking operation grew its mortgage book and significantly increased customer deposits.
AMP’s new chief executive Alexis George said there was “good momentum” in the transformation of AMP.
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AMP was hit hard by a government-backed inquiry in 2018 into financial misconduct that found widespread wrong-doing and conflicts in the sector, prompting some significant investors to move money out of the wealth manager.
Once billed as a one-stop financial shop, AMP has slimmed down in recent years via the sale of its once flagship life insurance division, among other assets. The 173-year-old firm is also planning to separately list the private markets division of AMP Capital.
Ms George said the demerger was on track for completion in the first half of 2022.
The company said in its results that it had also received potential interest in the AMP Capital business.
“AMP will consider any approaches in line with its obligation to act in the best interests of shareholders,” the company said.
The $252 million statutory loss, which includes various impairments and non-cash write-downs, compares to a $177 million profit recorded one year earlier.
AMP recorded a $356 million underlying net profit, representing an improvement on the prior year, which the company attributed in part to strong earnings from its banking operations.