AMP (ASX: AMP) Share Price Dips Amidst First Quarter Update

April 18, 2024 03:48 PM AEST | By Team Kalkine Media

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AMP (ASX: AMP) Share Price Dips Amidst First Quarter Update — Image source: shutterstock

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The AMP Ltd (ASX: AMP) share price faces downward pressure on Thursday, slipping nearly 0.70% to AU$1.13 as of the latest trading session.

Investors are reacting to the company's first quarter update, prompting a sell-off in its shares.

AMP Bank's total loan book saw a 3.7% decline quarter on quarter, falling to AU$23.5 billion. However, management attributes this decrease to their strategy of prudently managing loan growth amidst current margin pressures.

On a positive note, AMP Bank's total deposits experienced a slight increase quarter on quarter, reaching AU$21.4 billion.

The company's platforms net cashflows surged by 32% compared to the prior corresponding period, totaling AU$201 million for the quarter. This growth was accompanied by a 4.5% increase in platforms assets under management (AUM), reaching AU$74.3 billion by the end of March.

Similarly, the Superannuation & Investments sector saw a 4.2% rise in AUM, climbing to AU$54.1 billion by the end of the quarter.

AMP's Chief Executive, Alexis George, expressed satisfaction with the quarter's performance. She highlighted the increase in platforms net cashflows and improvements in Superannuation & Investments net cash outflows, along with the growth in AUM across both businesses.

George emphasized the company's efforts to address challenges faced by AMP Bank by carefully managing loan and deposit books. She also mentioned the development of a digital small business and consumer bank offer, slated for launch in Q1 2025, to diversify and build deposits.

Additionally, George lauded the performance of AMP's non-bank operations, noting the positive impact of investment markets on wealth management businesses. Inflows from independent financial advisers grew by 22% compared to Q1 2023, reflecting strategic efforts to enhance platform functionality and attract this market segment.

Managed portfolios on the flagship platform North reached AU$14.9 billion in AUM, continuing the strong growth trajectory since its launch in 2018.

As the market digests AMP's first quarter update, investors remain vigilant for further developments in the company's strategic initiatives and their impact on future performance.

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