AMP Limited’s cash flows showed “underlying signs of improvement” when the wealth giant released an update on Thursday, while AMP Capital has “remained focused on delivering for clients, with continued deployment of capital in (its) infrastructure funds.”
“Business performance remained resilient during the first quarter as we continued to make progress on delivery of our transformation strategy to become a simpler, client-led business,” said chief executive Francesco De Ferrari.
“We saw an encouraging performance in AMP Bank, performing solidly in a highly competitive market with sustained loan book growth…We continue to improve the capabilities of North to support both AMP aligned and external financial advisers in servicing their clients and to ensure it continues to be a leading platform.”
Unfortunately, the good news comes too soon to salvage Mr De Ferrari’s job, with the former Credit Suisse banker still set to depart AMP after his three-year turnaround strategy floundered following repeat scandals and continued difficulty in revitalising the advice business during a period of significant upheaval for the industry.
“We are accelerating change within AMP, having made strong progress on addressing our legacy issues, including our client remediation program, which is close to 90 per cent complete. We remain focused on delivering critical priorities to progress our transformation over the next quarter and continue positioning the business for future growth,” Mr De Ferrari said.
Meanwhile, AMP Capital saw $2.9 billion in net outflows for the quarter as it fought to keep its flagship Australian Diversified Property Fund (DPF) from falling into the hands of Dexus after the fund’s independent board unanimously recommended that unitholders vote in favour of a merger offer.
Missing from the update was any news about a potential takeover from US-based private equity player Ares, which recently said it was more interested in acquiring 100 per cent of the asset management business rather than the 60 per cent stake AMP had put on the table.
