InDaily

Adelaide's independent news

Support

AMP slashes dividends after profits crash

Business

AMP has flagged a 96 per cent drop in full-year profit and a drastically smaller final dividend after confirming it will set aside another $200 million to cover the cost of customer remediation related to issues heard at the banking royal commission.

Comments
Comments Print article

The wealth manager expects net profit attributable to shareholders for the 12 months to December 31 of about $30 million, it said in a statement on Friday.

That compares to $848 million in 2017.

The performance means AMP will slash its final dividend from 14.5 cents to 4.0 cents, a move likely to anger shareholders who already delivered a first strike on remuneration last year.

The news dragged AMP shares to within just four cents of their all-time low of $2.24 in early trade on Friday.

At 1043 AEDT, they were still down 20 cents, or 7.87 per cent, at $2.34.

The company faces the prospect of a board spill at May’s annual general meeting, with furious shareholders having voted against last year’s remuneration report shortly after revelations of AMP’s misconduct were made public.

AMP, which lost its chief executive and chairman following its mauling at the royal commission for issues including lying to regulators and charging fees for no advice, reports its full-year results on February 14.

AMP had already given an estimate of the latest provision but has now firmed up the pre-tax amounts of $186 million, for remediation program running costs, and $14 million, for lost customer earnings in the second half.

Underlying profit – which strips out various one-off costs- is estimated to come in at about $680 million, still down 35 per cent on 2017’s $1.04 billion.

AMP shares were worth about $5.50 as recently as March last year.

– AAP

We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron

Comments

Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article

Subscribe to InDaily – it’s free!

South Australia’s locally owned, independent source of digital news.

Subscribe now and go in the monthly draw* for your chance to WIN a $100 voucher!

Subscribe free here

*Terms and conditions apply

Welcome back!

Did you know it’s FREE to subscribe?

Subscribe now and go in the monthly draw* for your chance to WIN a $100 voucher!

Subscribe

*Terms and conditions apply