AMP reports $252m loss for 2021
AMP has outlined a statutory net loss of $252 million for 2021 in its full-year results today, compared to a profit of $177 million a year ago.
The firm said this was impacted by statutory impairment charges, mainly non-cash writedowns.
Announcing the results to 31 December, 2021 to the Australian Securities Exchange (ASX), it said revenue from continuing operations was $3.29 billion, down slightly from $3.39 billion a year ago.
The client remediation process was now completed, it said, which had cost a total of $828 million, of which $588 million was paid to customers. This was 6% higher than the firm had initially forecast three years ago.
In the wealth management business, total assets under management (AUM) increased by 8% to $134 billion, up from $124 billion a year ago.
AUM on the North platform increased to $61.4 billion driven by improved investment markets and an increase in inflows from external financial advisers, which were up 18% to $1.3 billion.
Net profit after tax on the Australian Wealth Management division was $48 million, down from $64 million a year ago, while there were $146 million losses in Advice.
Alexis George, chief executive of AMP, said: “We have set a clear strategy to drive two simpler and more efficient businesses, well placed to compete, grow and deliver value in a highly dynamic market.
“There are positive signs in our platform business with North AUM growth from stronger market performance and higher inflows from the EFA channel, which is a key focus of our strategy and is being supported by ongoing enhancements to investment choice and functionality, and competitive pricing.”
The demerger of the firm’s private markets business from AMP was scheduled to be completed in the first half of 2022, she said.
“Significant progress has been made on the demerger of Private Markets from AMP, and we’re on track for completion in the first half of this year. Operational separation is now complete, including the transfer of the multi-asset group investment team into Australian Wealth Management, and the appointment of chairman and deputy chairman designates to establish an independent board.
“We have good momentum in the transformation of AMP, repositioning our core capabilities to take advantage of the opportunities ahead of us, as we progress towards and beyond demerger as a simpler and purpose-led business.”
AUTHOR
Laura Dew
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