AMP profits nosedive, new board director announced

AMP profit stumbled 74% in the first half of the year as the wealth manager took a $290 million hit from advice remediation following the financial services Royal Commission.

It brought in a net profit of $115 million as compared to $445 million in last year's first half.

The wealth protection business, which includes group risk insurance, only turned around $1 million in operating earnings - a fall of 98% over the previous corresponding period.

AMP Capital grew operating earnings by 2.2% to $94 million.

AMP Bank saw a 20% growth, with operating earnings of $ 78 million.

At the same time, AMP announced former Treasury Secretary John Fraser would be joining AMP Limited's board as a non-executive director.

Fraser was UBS Global Asset Management's chairman and chief executive for more than a decade in a London-based role.

He has held a number of roles at the Australian Treasury over two decades, the most recent of which he retired from last month.

AMP Chairman David Murray said: "We're pleased to welcome John to the board. His appointment demonstrates that board renewal is well underway as we continue the rebuild at AMP."

"John brings a wealth of top-level experience across financial markets, governance and public policy to the AMP board table. He has an exceptional blend of public and private sector experience, in Australia and internationally, and his strategic insights will be a great asset for the organisation," Murray said.

Read more: Royal CommissionAustraliaTreasury Secretary John FraserAMP Chairman David MurrayAMP BankAMP LimitedAustralian TreasuryUBS Global Asset Management
Link to something b9XJ10mE