Australian Investment Blog
27/07/2018
AMP's business update sends the stock lower – again
Stock
AMP $3.35 as at 27/07/2018
Event
No surprises here from AMP as the poor news continues to come out of the financial services firm. This morning AMP gave an update ahead of their first half report, “AMP takes action to reset business” – hardly a comforting name, in which AMP went on to announce provisions of $290mil for advice remediation, reduced fees on products, lowered expectations for first half profits and predicted the dividend to be at the lower end of the pay-out ratio for the full year, however they said the interim dividend would be cut more substantially. The announcement highlights the difficult conditions AMP is operating in, as platform and advice fees come under pressure, AMP is also under pressure from the regulator, shareholders and clients – certainly a tough gig at the moment. The market didn't like the update, view our last note on AMP here;
AMP Chart
Market Matters Take/Outlook
We have discussed AMP at length in recent reports, and see this announcement as ...
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