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Financial giant pulls guidance

Lachlan Maddock
— 1 minute read

One of Australia’s major institutions has pulled its guidance amidst the coronavirus outbreak, saying the “uncertain environment” means it can’t provide an accurate forecast.

AMP said that while it remains committed to executing its three-year plan – including the creation of a “simpler, leaner business” –  the coronavirus means it will have to withdraw its guidance.  

“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,” said AMP chief executive Francesco De Ferrari.

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“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.”

The sale of AMP Life remains on track for completion by 30 June 2020, while the divestment process for its New Zealand wealth management continues with a further update to be provided “at or before 1H 2020 results”. 

“Protocols and contingency plans are also in place to ensure our operations and client services can continue throughout the pandemic,” Mr De Ferrari said.

“Our group balance sheet and liquidity remain strong and we are confident in our ability to support clients in this time of need.” 

Mr Ferrari recently enjoyed a massive increase to his short-term bonus of 200 per cent of his fixed base salary – something that Mr De Ferrari said would be contingent on his ability to deliver on the company’s three-year plan. But with AMP already seeing massive outflows from its wealth business, and fresh pain from the coronavirus outbreak, that just got a whole lot harder.

 

Financial giant pulls guidance
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