SYDNEY — Shares of AMP Ltd. fell early Thursday after reporting that its full-year underlying net profit fell by 34%, missing consensus expectations.
The stock was down 9.5% at 1.19 Australian dollars (US$0.82). It earlier hit an almost four-month low of A$1.17, and is currently the worst performer on the ASX200.
The Australian wealth management company on Wednesday posted net profit of A$387 million for the 12 months through December, compared to a A$252 million net loss the year before.
But, AMP’s underlying profit fell by 34% to A$184 million, which it said was driven mainly by investment market volatility on assets under management, strategic repricing in wealth management businesses and net interest margin compression in the company’s bank unit.
UBS analysts said in an early look at the result that AMP’s core profit drivers have continued to disappoint, with the full-year underlying net profit after tax missing consensus and UBS forecast by 10%.
“Overall our first impressions are that the result highlights the depth of challenges facing the core businesses, and FY 2023 guidance commentary does not indicate FY 2023 will be much easier,” said UBS.
For FY 2023, AMP said it is targeting above system residential loan growth in its bank unit, while its net interest margin is expected to be in-line with FY 2022.
With respect to platforms, AMP expects FY 2023 assets under management revenue margins expected to be broadly in line with FY 2022.
AMP shares are down around 11% so far this year.