AMP scraps earnings forecasts, citing coronavirus uncertainty

AMP has withdrawn its profit forecasts handed down in February that flagged flat growth for the wealth giant as the uncertainty of the coronavirus pandemic continues to grip.

The $203 billion company said its capital position and liquidity remains strong, but the uncertain environment and "resultant challenges" made it difficult to provide accurate forecasts for the year.

In February, AMP posted a $2.5 billion loss and 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.

AMP chief executive Francesco De Ferrari has withdrawn AMP’s forecasts for its business.Credit:Dominic Lorrimer

Forecasts predicted AMP would continue to face reputational issues that would impact outflows and operating earnings would be 20 per cent lower.

On Thursday, AMP confirmed 80 per cent of remediation payouts to clients were on track to meet the end of financial year deadline and the sale of AMP Life's remains would be completed by 30 June. The process for divesting the New Zealand wealth arm was also on track, it said.

“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.

“Whilst the situation is rapidly evolving, our immediate priorities are to support the public health efforts, help our clients make the right choices, and ensure our people are safe and working in healthy environments. Protocols and contingency plans are also in place to ensure our operations and client services can continue throughout the pandemic."

More to come…

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