Advice software contributes to $68m AMP impairments
Development of an advice software solution is among factors that have led AMP to announce impairment charges of $68 million for FY22.
The $68 million (post-tax) impairment charges included the cost of lease contracts arising from reduced office space, described by the firm as “onerous”, and the write-down of assets on AMP’s balance sheet related to development of an advice software solution.
The charges would result in a reduction in the firm’s FY 22 statutory profit but would not impact its net profit after tax (NPAT).
They would not have a material impact on the firm’s capital position or liquidity.
Alexis George, chief executive, said: “AMP remains focused on continuing to build a robust balance sheet. Our strategic priorities to simplify and reposition the business will require us to recognise some impairments.
"These items do not impact underlying NPAT or have a material impact on AMP’s capital position or liquidity. This action will help to ensure we are well positioned for the future, to deliver on our strategy as a focused wealth management and retail banking business in Australia and New Zealand."
AUTHOR
Laura Dew
Recommended for you
Australian Ethical has become the latest fund manager to flag an expansion of its private markets range while reporting a 50 per cent rise in statutory net profit after tax in the first half of FY25.
PM Capital’s Global Opportunities Fund has made a binding offer to acquire the two listed investment companies run by Platinum Asset Management.
Costs associated with the failed KKR deal have caused Perpetual’s statutory net profit after tax to more than halve to $12 million for the first half of FY25.
The exit of co-CIOs Andrew Clifford and Clay Smolinski from Platinum has highlighted key person risk, with Morningstar raising its outflow forecast to 33 per cent of FUM per annum in response.
ha ha, I thought AMP said that the advice business was completely separate, it seems that product subsidising advice delivery continues. AMP are doing their best to ensure that the advice industry stays in the mud. They continue to use the money from product to manipulate the Advice industry to further the cause of their conflicted model.