AMP share price: where next following Q3 results?

The market reaction was subdued when the beleaguered wealth manager – AMP – revealed its Q3 FY19 assets under management and cash-flow update to the market yesterday. AMP's stock has risen around 3% since then.

The AMP share price has risen steadily over the last five trading sessions – likely in anticipation of yesterday’s Q3 assets under management and cashflow update.

Yet that was mostly the end of it, with the AMP share price neither surging nor crashing in response to the actual Q3 numbers.

Indeed, that was also the impression given by management when they noted that ‘each of our businesses performed broadly as expected during the third quarter.’

The market seems in agreement; at last.

Q3 results at a glance

AMP looks to be making good on its promise of forging a simpler, stronger and more ‘scaled’ organisation.

For one, AMP Bank saw good deposit and loan book growth during the quarter.

Specifically, AMP Bank’s deposits have now reached the A$14.5bn milestone – an increase of A$0.6bn since the Q2 period. On this front, AMP noted that it had witnessed particularly strong growth ‘in retail and platform deposits reflecting AMP Bank’s strategy to move to a more deposit-led funded Bank.’

Though market conditions remained subdued, AMP Bank also saw its loan book hit A$20.3bn in the third quarter, an increase of A$0.1bn since the second quarter.

On the topic of wealth management – from which AMP is trying to diminish its reliance upon – the firm noted that its Australian wealth division ‘achieved stronger inflows during Q3, reflecting our improved fee competitiveness, but also higher outflows as the new Protecting Your Super legislation was implemented in Australia.’

Assets under management now stand at A$133.2bn as of 2019’s third quarter, for the AMP Australian Wealth Management Division.

AMP Capital’s assets under management also increased during the third quarter, reaching A$202.2bn.

AMP share price: the analyst take

Another quarter, another round of analyst opinions.

Citibank wasn’t impressed, for one. Though this is hardly surprise: the broader analyst community is also relatively sceptical – though less so than Citi – assigning AMP a hold rating, according to the Wall Street Journal. In this instance though, Citi downgraded their EPS target on the company, reiterated their ‘sell’ rating and hit AMP with a share price target of A$1.70.

Credit Suisse took a considerably more optimistic view on yesterday’s Q3 update, providing the analyst landscape with a bit more personality. Here, the investment bank noted that wealth inflows have began to recover, though Credit Suisse has still projected that FY19 underlying profit will come in a shade lower (0.1%) than previously expected.

This all led the investment bank to assign an ‘outperform*’ rating and a share price target of A$2.00 on the firm focused on reinventing itself.

At the time of writing, the AMP share price trades at A$1.85 – 24% lower than it did at the start of 2019.

Practise trading Australian bank stocks with an IG demo account 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.