Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

AMP share price: what to expect from its 2019 interim report

Investors will be keen to see how much progress has been made on transforming the company’s business model, when the troubled wealth management firm reports its interim results August 8.

AMP share price Source: Bloomberg

Of Australia's large financial companies, AMP Ltd was the hardest hit by the Hayne Royal Commission, having seen its share price fall 46% off the back of this wide-reaching inquiry.

Now, with AMP set to report its 2019 interim results on August 8, investors will likely be eager to see if there are any signs that the beleaguered wealth management firm has began to turn its prospects around.

What to expect from AMP’s interim results

As we previously reported, AMP’s last major announcement to the market involved the revelation that the much-anticipated, A$3.3 billion sale of AMP Life had fallen through.

This was joined by comments that it was unlikely that AMP would pay an interim dividend.

AMP Ltd shares fell 16% off the back of that news.

Even though AMP’s interim dividend is unlikely to be paid, investors will almost certainly be keen to see an update on AMP’s weakened cash position.

For example, in its Q1 update to investors, AMP noted that it experienced net cash outflows of A$1.8 billion – of which A$538 million was related to regular pension payments.

Speaking of these outflows, AMP’s CEO, Francesco De Ferrari noted:

‘Cashflows in Australian wealth management continued to be challenged given the post-Royal Commission environment.’

Given that the company also pointed out that it expects continued ‘weakness in inflows and higher outflows in the post-royal Commission environment,’ investors are liable to closely scrutinise updated cashflow figures following AMP's upcoming interim results.

Can AMP’s record share price low last?

AMP’s management remains confident in the firm’s long-term prospects, arguing that, ‘we remain focused on transforming our business model in Australian wealth management to compete more effectively.'

AMP Ltd is also optimistic that it can find a way to salvage the A$3.3 billion AMP Life sale – in some form, at least.

Investors and analysts have taken a less positive view on the firm in the wake of the Royal Commission.

According to the Wall Street Journal, the overwhelming sentiment surrounding AMP is a negative one. Of the 12 analysts covering the stock, only 1 rate it as a buy, while six rate it a hold and four rate it a sell.

AMP going forward

Ultimately, AMP Ltd remains in an interesting position. While true, that in terms of share price, AMP remains at record lows, as Paul Rickard, from the Switzer Report, aptly points out:

‘I would like to say that the AMP is a “buy”, but I am not convinced the knife has stopped falling.’

With Mr Rickard adding, ‘I just have a sneaky feeling that we might see $1.50 before we get back to $2.00.’

The central question that investors likely now have is: can AMP actually turn around its wealth management business in the long-term?

Such questions and associated concerns are likely to come into greater focus as we draw closer to AMP’s interim results, scheduled for August 8.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.