Australia's AMP hits over 2-month low on flagging fall in annual margins
AMP's platform net cashflows fell to A$426 million ($271.06 million) for the third quarter from A$748 million a year ago.
Shares in AMP touched a more than two-month low on Wednesday after the Australian wealth manager flagged lower growth expectations for the rest of the year and a fall in annual margins as high-interest rates hurt earnings. The 173-year-old firm said it expected to record net interest margin below the prior guidance level of 1.30 per cent to 1.35 per cent for the full year ending December.
"We expect to see subdued growth for the remainder of the year." "With higher rates expected to weigh on asset valuations and credit growth, it seems the cyclical headwinds are adding to the deeper strategic ones hurting AMP's business," said Kyle Rodda, senior market analyst at Capital.com.
AMP's platform net cashflows fell to A$426 million ($271.06 million) for the third quarter from A$748 million a year ago. Net cashflows fell due to a continued drop in discretionary investments, as AMP's clients respond to the current macro-economic environment, CEO Alexis George said. "With higher rates expected to weigh on asset valuations and credit growth, it seems the cyclical headwinds are adding to the deeper strategic ones hurting AMP's business," said Kyle Rodda, senior market analyst at Capital.com.
AMP's platform net cashflows fell to A$426 million ($271.06 million) for the third quarter from A$748 million a year ago.
Net cashflows fell due to a continued drop in discretionary investments, as AMP's clients respond to the current macro-economic environment, CEO Alexis George said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
07:45 AM IST