AMP results structure will make advice business stand alone

Mike Taylor

Managing Editor/Publisher, Financial Newswire

19 July 2023

AMP has confirmed to the Australian Securities Exchange just how simple its business structure covering wealth management has become.

Weeks after announcing that it was scrapping its Australian Wealth Management division, the company confirmed to the ASX that, in future, it would be reporting on its platform business, master trust business and advice business individually.

It said the recently-sold SuperConcepts business earnings would be reported under “Discontinued Operations”.

The confirmation of the changed reporting arrangements comes ahead of AMP announcing its first half results on 10 August.

AMP announced in May that it would be moving to a new operating model which would see an end to the Australian Wealth Management division and the exit of Scott Hartley as chief executive of the division.

However, yesterday’s announcement to the ASX makes clear that each of the businesses which made up the wealth division will now be seen largely as stand-alone entities – something which will likely underline the relative profitability of the advice business.

The company acknowledged with the release of its full-year 2022 results in February that the advice business had still yet to break-even but claimed improvements on the basis that losses had been reduced to $78 million.

“There is more work to do for Advice to operate as a standalone sustainable business but the progress is pleasing,” AMP chair, Debra Hazelton said at the time.

AMP has still yet to declare its next steps following its loss of the Buyer of Last Resort (BOLR) class action earlier this month.