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AMP half-year profit dives 74 per cent

AAP  |  08 Aug 2018Text size  Decrease  Increase  |  
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AMP's (ASX: AMP) first-half profit plunged 74 per cent to $115 million after the company set aside $290 million to refund and compensate customers it overcharged for financial advice.

The financial advice group's revenue for the six months to June 30 was down six per cent to $7.17 billion.

AMP declared an interim dividend of 10 cents per security, franked at 50 per cent.

AMP's result is the first since damaging revelations at the banking royal commission that the group charged customers for advice and misled the regulator.

The revelations claimed the jobs of former CEO Craig Meller and chairman Catherine Brenner.

AMP's underlying profit - excluding the compensation provisions - was $495 million, down from $533 million.

AMP acting CEO Mike Wilkins said the results "demonstrated AMP's resilience through a difficult period".

"While there will be further challenges ahead, we have a strong foundation on which to reset the business and restore the confidence of our customers and the wider community," he said.

"The events around the royal commission into financial services have challenged our reputation, and while we continue to monitor the impacts, we have taken action to stabilise the business and move forward."

Horror half-year results

  • Net profit down 74 per cent to $115 million
  • Revenue down six per cent to $7.173 billion
  • Interim dividend 10 cents, 50 per cent franked

AMP looks to former Treasury boss

Former federal Treasury secretary John Fraser will join the board of troubled financial services giant AMP.

Mr Fraser will take up a board seat at AMP in September - about a month on from his resignation as Treasury head in July.

AMP chairman David Murray - the former Future Fund chairman who took over from ousted chairman Catherine Brenner - said the appointment "demonstrates that board renewal is well underway".

 

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