AMP admits advice has been a loss-maker

AMP’s board has formally declared the company to now be a “retail-focused wealth management and banking group in Australia and New Zealand”.

However, the company has admitted that its advice business has been running at a substantial loss in recent years and is projected to do so again this year.

Against this background, AMP chief executive, Alexis George has made clear that AMP Bank will be one of the commercial drivers for the company’s success through driving its home mortgage business and the same time as AMP seeks to drive its platform business.

She also made clear that the company is will to pursue acquisitions (“inorganic growth”) to achieve new capabilities and scale.

Addressing the AMP annual general meeting, George specified platforms as being “an area with strong potential” which supported both AMP’s aligned advisers and independent advice practices.

George also pointed to AMP’s willingness to invest in the North platform as a driver for attracting more independent financial advisers (IFAs).

“In wealth management area, an area with strong potential is our Platforms business, which supports both our aligned adviser and independent advice practices,” she said. “We are focused on making our top investment management platform, North, a preferred platform for financial advisers.”

“While we have a network of aligned advisers, who know our systems well and use North, if we are to grow we also need to engage independent financial advisers. We are doing this by constantly improving the capability of the platform, expanding the investment options available and ensuring we have the right relationship management in place.”