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Financial services giant AMP has cut its profit forecast blaming costs arising from advice remediation, the Royal Commission and a portfolio review.
AMP says it expects to post an underlying profit of around A$680 million for the year ending December 2018 with only around A$30 million profit attributable to shareholders. That may represent a 96% decline from AMP’s A$848 million profit attributable to shareholders in FY17.
In a statement, the firm said its total profit attributable to shareholders in 2H 18 has been impacted by a range of previously advised items being reported below underlying profit. These include the costs arising from the Royal Commission response, a portfolio review, increased investment in risk, governance and controls, and advice remediation.
“Recognising the 2H 18 performance of the business, the related capital impacts and the uncertainties in the operating environment, the board anticipates declaring a final dividend of 4 cents per share,” AMP noted.
That, again, is down from the final dividend of 14.5 cents per share for FY17.
AMP will announce its FY 18 results on February 14.
