Wealth manager AMP has suffered another decline in bottom-line profit as it continues to navigate legal issues while focusing on expanding its new online banking business.
Subscribe now for unlimited access.
or signup to continue reading
See subscription optionsInterim net profit fell by almost five per cent to $98 million, mainly due to "business simplification and litigation costs".
But the decline was far less compared to the previous corresponding half-year, when profit dropped 61 per cent.
AMP is still dealing with class actions from the fallout of the banking royal commission, concluded in 2019, which found it had charged clients fees for no service.
But the firm's underlying earnings jumped by 9.2 per cent to $131 million, which CEO Alexis George linked to strong cashflow in AMP's wealth business.
"We are managing controllable costs in line with guidance, with momentum into the second half of the year," she said on Thursday.
Ms George also highlighted AMP's digital banking offering AMP Bank Go, which launched in February.
"With our digital challenger bank, we remain focused on growth and those smaller segments that offer margin opportunity," she said.
As of June 30, AMP Bank Go had about 7500 customers and $123 million in transactional balances.
AMP will pay a dividend of two cents per share for the half-year ended June 30, in line with guidance.
AMP provides banking, super and retirement solutions in Australia and New Zealand. It has more than one million customers and employs more than 2,300 people.
Australian Associated Press
