Whilst the 1H 20 results are still being finalised and subject to audit review, AMP expects to report underlying profit for retained businesses (Australian wealth management,
AMP has prioritised servicing clients throughout this period, including temporarily increasing resources, as well as maintaining business resilience, which has resulted in additional costs. The pandemic has also impacted the pace of investment spend, including the cost reduction program, though AMP remains committed to delivering
Despite challenging circumstances, AMP successfully completed the complex sale of AMP Life, simplifying the portfolio, freeing up capital and delivering a foundational element of its transformational strategy. AMP's remediation program remains on track and is expected to be 80 per cent complete by the end of FY 20.
1H 20 operating earnings
AMP expects to report retained business unit operating earnings of approximately
Australian wealth management - 1H 20 expected operating earnings of approximately
Expected average assets under management (AUM) of
Net cash outflows estimated to be
Expected North net cash inflows of
Expected average AUM of
Performance and transaction fees estimated to reduce by around 40 per cent compared to 1H 19 due to market impacts
Seed and sponsor income valuations estimated to reduce operating earnings by approximately
Credit loss provision expected to impact
Expected total loan book of
Capital management
AMP will provide an update on its capital management strategy, including the expected use of net cash proceeds from the sale of AMP Life at the 1H 20 results on
At the interim results, AMP also intends to provide an update on its transformational strategy and new
AMP Chief Executive
'AMP has taken decisive action to support clients and employees and maintain a strong and resilient business, as COVID-19 continues to impact investment markets and the broader economy.
Our strong capital position and liquidity have positioned us well to respond, though our first half results have been impacted by the market volatility.
The pandemic has presented many challenges but has not distracted us from our mission to transform AMP into a simpler, client-led, growth orientated business.
In the first half, we have made significant progress in delivering our strategy including completing the highly complex sale of AMP Life which simplifies our portfolio and sets us up well for the future.'
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Mark_Roberts@amp.com.au
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