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Financial Planning

AMP flags $325m performance hit

AMP's 2021 full-year performance will cop a $325 million hit as it uncovers massive impairment charges.

The impairment charges comprise partial impairments of deferred tax assets ($100m), write-downs of intangibles ($135m), onerous lease contracts ($110m), and other impairments that include adjustments from its financial advice assets ($80m), which total $425 million on a pre-tax basis and net to $325 million post-tax.

About $220 million will slash the AMP's statutory profit when its full-year results, which span the calendar year, are released in the following months.

AMP's share prices traded as low as $1.015 upon the announcement.

The losses are on top of remediation relating to superannuation misconduct ($45m) and an adjustment for the sale of its life insurance and mature business ($65m).

AMP chief executive Alexis George said: "As we have developed our strategies for the post-demerger businesses of AMP and Private Markets, we have reviewed our balance sheet to ensure that assets recorded are in line with the future strategic direction."

She added that the charges are mainly non-cash and related to legacy issues.

In its September quarter update, the group reported mixed results. 

The wealth management business saw $1.4 billion in outflows while the North platform swelled by $1.7 billion.

Wealth management assets under management stayed steady throughout the quarter at $131.2 billion.

Read more: AMPAlexis George