AMP announces $68m writedown

In an ASX listing on Wednesday, AMP said the impairments include the costs of “onerous lease contracts” arising from reduced office space requirements and the write-down of assets on AMP’s balance sheet related to the development of an advice software solution. The firm is also due to recognise a small amount of capitalised cost impairments. 

The impairments, it admitted, will result in a reduction in AMP’s FY 22 statutory profit, but is not expected to impact its FY 22 underlying net profit after tax (NPAT), which remains AMP’s preferred measure of profitability.

“AMP remains focused on continuing to build a robust balance sheet. Our strategic priorities to simplify and reposition the business will require us to recognise some impairments," said Alexis George, AMP chief executive officer.

“These items do not impact underlying NPAT or have a material impact on AMP’s capital position or liquidity. This action will help to ensure we are well positioned for the future, to deliver on our strategy as a focused wealth management and retail banking business in Australia and New Zealand.”

AMP will announce its FY 22 results on 16 February 2023.