Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

AMP (ASX:AMP) announces big HY20 profit hit

AMP (ASX: AMP) has given an update about its 2020 half year operating earnings. It includes the impacts of COVID-19. 

AMP (ASX: AMP) has given an update about its 2020 half year operating earnings. It includes the impacts of COVID-19. The AMP share price is down 8%.

AMP is one of Australia’s largest diversified financial businesses, though it has severely shrunk since the Hayne Royal Commission.

AMP’s HY20 update

AMP said that it expects to report continuing business earnings of approximately $195 million. The reason why AMP has made that ‘continuing’ distinction is that it recently sold a division for $3 billion.

The Australian wealth management division expects operating earnings of $60 million with average assets under management (AUM) of $126 billion, down 6% compared to the second half of 2019. Net outflows were around $4.4 billion.

AMP Capital expects operating earnings of $70 million with average AUM of $198 billion, down 2% compared to the second half of 2019. Performance and transaction fees are estimated to reduce by around 40% compared to the prior corresponding period due to market impacts.

AMP Bank expects operating earnings approximately $50 million. A credit loss provision of $25 million is expected, which will impact earnings. Increased COVID-19 provisions are common with banks at the moment. The total loan book is expected to be $20.9 billion, an increase of around 3.5%.

Cost savings

AMP said it’s still committed to delivering $300 million of annual cost savings. It’s investing between $1 billion to $1.3 billion to transform the business.


AMP is making operating profit in each of its divisions, which is a good sign. A business shouldn’t go to $0 if it’s making genuine profit in its operating divisions. But I just don’t know what the future holds for AMP – will it just keep losing clients? I’d rather go for other ASX dividend shares with clearer paths to growth.

[ls_content_block id=”14948″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content