AMP sees $4 billion withdrawn from its wealth management

AMP sees $4 billion withdrawn from its wealth management
AMP sees $4 billion withdrawn from its wealth management

AMP's profit has been hit by its appearance at the royal commission, after which customers pulled $4 billion from its wealth management arm in 2018.

The beleaguered wealth manager's profit plummeted 97 per cent to $28 million after taking a beating at the banking royal commission.

Revenue from ordinary operations dropped 55 per cent to $820 million.

AMP made a profit of $848 million a year earlier.

The company said its underlying earnings, which strip out a lot of one-off costs and gains, were down a more moderate 35 per cent to $680 million.

It also recorded $656 million in customer remediation largely related to misconduct aired at the financial services royal commission.

AMP cut its final dividend from 14.5 cents to 4.0 cents.

Net cash outflows from its Australian wealth management division totalled nearly $4 billion dollars, compared to $931 million in the prior financial year.

AMP said the exodus was due to "the reputational impact of the royal commission" and financial advisors focusing on keeping existing customers rather than bringing in new business.

Superannuation member contributions were down but the company said it retained the majority of its employer super plans.

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