- A Royal Commission into the Financial sector uncovered damning practices by AMP Capital.
- The company responded with a plan to restructure its operations into two entities.
- A class action suit filed against AMP Capital has now been settled.
Diversified financial services provider AMP Limited (ASX: AMP) saw its share price embark on a steady decline as investors reacted to the negative findings of the Royal Commission inquiry into the banking and financial services sector led by Kenneth Hayne.
Source: ASX
AMP has operated for over a century as a provider of traditional banking services such as mortgages, loans and deposits. It also offered financial advice and investment services for clients. The company had a massive network of independent financial advisors.
AMP’s profitability suffered a massive decline following the damaging revelations, with no firm evidence yet that the restructuring is bearing fruit.
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AMP Limited Financial Performance
Source: ASX
The listed entity emerging from the company’s 2021 strategic business restructuring is AMP Limited (ASX: AMP). On 9th August, the Half Year 2023 results were released with mixed results. Overall revenues were up 31%, but statutory net profit dropped 44%. Underlying net profit – which reflects core business results without one-offs was up 23.9%, and the company will continue its share buyback program.
A Stockopedia analyst has a HOLD recommendation on AMP shares based on improvements seen from the company’s business transformation in recent financial releases and market reaction. The share price is up, and there has been “an uptick in analyst earnings expectations.”
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