Markets hurt AMP's profit
Listed financial services company AMP reported a 40% slump in its profit for the year due to a fall in investment income, but its underlying business continues to improve.
Wednesday, February 27th 2002, 2:50PM
The results include a loss of A$26 million on investments compared to a gain of A$617 million in the previous period.
AMP chief executive Paul Batchelor described it as one of the toughest years he has seen in 30 years of business.
At the operating level the company increased its profit on what it calls 'core recurring operating margins' by 14% to A$938 million.
Within the group the business which operate in New Zealand fared well. AMP Financial Services in Australia and New Zealand increased its operating margins by $A43 million to A$393 million.
AMP Banking in Australia and New Zealand made its first profit this year - A$5 million compared to a loss of A$17 million
The group's achilles heel continues to be Henderson Global Investors which suffered reported its profit had fallen by one third to A$219 million. However, it remains highly leveraged to improvements in global equity markets, especially in the UK, where 10% of AMP's A$13.8 billion of shareholders' funds were invested last year.
AMP will pay a final dividend of A26c a share, taking the total for the year to A51c, up from A47c the previous year.
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