AMP earnings watch: 3 things to consider ahead of 2019 interim results

AMP is set to announce its half-year results in less than three days. Here’s what investors should watch out for ahead of this release.

The AMP Ltd share price will be on watch ahead of its 2019 interim results, scheduled to be released Thursday, August 8.

After the wealth management firm recently said that it was unlikely to pay an interim dividend, investors will likely be keen to gain clarity around future dividends and see how AMP’s turnaround plans are progressing.

Below we take a look at three things to watch out for ahead of AMP’s half-year results.

AMP's share price continues to struggle

AMP Ltd has had a difficult year, as the full implications of the Royal Commission has seen the wealth manager’s share price drop some 25% year-to-date.

At the time of writing, AMP currently trades for just A$1.76 per share, down 3.02%, as US-China trade tensions kick-started a sell-off of global equities overnight.

Even in the face of these political difficulties, investors, prospective and current, will likely been keen to see any news of potential growth catalysts for the firm that could help revive the company’s depressed share price.

An update on AMP Life

As we have covered previously, AMP’s stalled A$3.3 billion sale of the firm’s life insurance business – AMP Life – saw the company’s share price crater 16%, when announced.

In saying that, the company planning to purchase AMP Life, Resolution Life, remains eager to finalise the deal.

In the wake of the sale breakdown, Resolution Life reaffirmed:

‘Its strategic interest in expanding its in-force specialist life insurance business to Australia and New Zealand.'

Whether or not this deal is ever finalised, as well as any further update on the progress of this potential sale, will likely be a key focus for investors following AMP’s 2019 interim results.

Guidance on future dividends

AMP’s recent announcement that the company was unlikely to pay an interim dividend – though disappointing – is hardly surprising when you consider the remediation costs associated with the Royal Commission.

Investors will likely now be eager to see signs that AMP’s business model can prove successful in a post-Royal Commission environment.

Specifically, any indication from AMP’s interim results regarding the firm’s intention and/or capacity to resume dividend payments in the short and medium-term, will likely be of great interest to investors.

Prior to the fallout of the Royal Commission, AMP Ltd had established itself as a strong and consistent dividend payer for investors.

Ultimately, such details among others, will potentially speak to AMP's ability to successful transform its business model and company culture in an ever-changing, increasingly scrutinised business environment.

To read our previous coverage of AMP’s Thursday earnings, click here now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.