Australian AMP withholds dividend to review policy after units split By Reuters

© Reuters. FILE PHOTO: The logo of AMP Ltd, Australia’s largest business wealth manager, adorns its corporate headquarters in central Sydney, Australia, May 5, 2017. REUTERS / David Gray

(Reuters) – Australian wealth manager AMP (OTC 🙂 Ltd on Thursday posted a 57% increase in underlying profit in the first half of the year, helped by rising AMP Bank profits and investment income from the Group Office division, and curbed its interim dividend.

AMP has announced that it will review dividend payments, as well as its capital management strategy, after finalizing the split of AMP Capital’s Private Markets business, scheduled for the first half of 2022.

The company has been trying to restore its reputation since 2018, when a public financial sector investigation uncovered systemic wrongdoing, including billing for services it failed to provide and misleading regulators.

The struggling wealth manager added he was on track to achieve A $ 300 million ($ 221.22 million) in annual operating cost savings by fiscal 2022.

“Completing our spin-off will be a key priority. We have established a clear timeline to establish and separate AMP Capital Private Markets business this year,” CEO Alexis George said in a statement.

Underlying net profit after tax of retained businesses was AU $ 181 million for the half year, while the company’s Australian wealth management unit reported net cash outflows of AU $ 2.7 billion. Australian dollars, down from the 4 billion Australian dollars reported last year.

($ 1 = AU $ 1.3569)

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