AMP share price: 3 things to consider before the half-year report

We examine when financial services giant AMP will report its first-half results, as well as what we know and don’t know about these results.

Financial services giant AMP Limited (AMP) is set to release its half-year (H1) results next Thursday, 13 August.

What we know

With AMP Limited providing an update on its first-half results last week, the market already has good visibility on much of what the beleaguered wealth manager will report as part of its H1.

Looking at these guided figures – which are yet to be finalised and remain subject to an audit review – AMP expects to report underlying profits across its local and New Zealand wealth management arm, AMP Bank, AMP Capital, of between $140-150 million. This result, said AMP management, was driven by credit loss provisioning at AMP bank and general market volatility.

Breaking this guidance down on a more granular level, AMP Bank is expected to contribute $50 million to Group operating earnings, AMP’s Australian wealth management division $60 million and AMP Capital $70 million.

In saying that, AMP's local wealth management arm has struggled in the first half of FY20, with assets under management (AUM) expected to come in 6% lower, at $126 billion. Net cash outflows have also accelerated, estimated at $4.4 billion for the half – a result, said management, that was driven by the government’s early super access scheme.

Elsewhere, AMP said it expected loan loss provisions to impact its bank division’s earnings by around $25 million. On the positive side however, AMP's loan book grew 3.5% year-over-year, to $20.9 billion. Citibank described this growth as surprisingly strong.

In a statement to the ASX, AMP's Chief Executive Officer Francesco De Ferrari said: 'The pandemic has presented many challenges but has not distracted us from our mission to transform AMP into a simpler, client-led, growth oriented business.'

What remains less clear

Though AMP’s H1 guidance provides the market with strong earnings visibility, the dividend outlook has yet to be clarified. Here it was plainly noted that 'AMP will provide an update on its capital management strategy, including the expected use of net cash proceeds from the sales of AMP Life at the 1h 20 results on 13 August.'

Citi analysts, who have a Sell/High risk rating on the stock, note that they expect AMP will not announce an interim dividend, saying ‘we continue to see low likelihood of a capital return and/or dividend alongside this result.’

Looking forward, the investment bank thinks AMP won’t pay any dividends in its FY20 – though will resume paying dividends in FY21 and FY22, currently expected to come in at 4.8 cents and 6.5 cents per share, respectively.

What analysts are expecting

As AMP forges headlong into a multi-year transformational strategy, sell-side analysts remain mixed on the diversified financial services company, assigning the stock a Hold rating on average, according to the Wall Street Journal.

The average price target of $1.63 per share – also according to the Wall Street Journal – typifies this uncertain view, though suggests some upside potential from current price levels.

AMP finished out Tuesday’s session at $1.45 per share.

How to trade AMP, long or short

Where do you stand heading into AMP’s first-half results: are you bullish or bearish on the stock? Whatever your view, you can use CFDs to trade both rising and falling markets, through IG’s world-class trading platform now.

For example, to buy (long) or sell (short) AMP using CFDs, follow these easy steps:

  1. Create an IG Trading Account or log in to your existing account
  2. Enter ‘AMP’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

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

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


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.