AMP scraps earnings forecasts, citing coronavirus uncertainty

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AMP scraps earnings forecasts, citing coronavirus uncertainty | CharlotteGriev1

AMP has withdrawn its profit forecasts from February that had flagged flat growth for the wealth giant as the uncertainty of the coronavirus pandemic continues to grip.

scrapped its final dividend after a rough year that saw clients abandon its wealth management arm in the wake of the damaging findings of the royal banking commission, forcing it to launch a capital raising to offset massive writedowns.Dominic Lorrimer “In response to uncertainty in Australia and globally, we have taken decisive action to support our clients and people, while working to maintain the strength and resilience of our business," AMP chief executive Francesco De Ferrari said.

Two weeks ago, Shaw and Partners' senior banking analyst Brett Le Mesurier forecast AMP's underlying profit of $440 million would more likely end up at $350 million because of continued fund outflows. He now estimates the profit to be even less.

 

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