8 August 2018Hot off the Press
Embattled financial service company AMP has reported a 74% drop in first half profits to $115 million after it set aside $290 million to compensate customers it overcharged or charged for no services.
The company’s revenue for the past six months also dropped by 6% to $7.17 billion.
AMP’s underwhelming results are the first since it was revealed through the banking Royal Commission that the company engaged in widespread misconduct including charging fees for no services and misleading the regulator.
The revelations led to a swathe of resignations, including that of CEO Craig Meller and chairperson Catherine Brenner.
In a statement, AMP acting CEO Mike Wilkins said the results “demonstrated AMP’s resilience through a difficult period”.
“While there will be further challenges ahead, we have a strong foundation on which to reset the business and restore the confidence of our customers and the wider community,” he said.
“The events around the royal commission into financial services have challenged our reputation, and while we continue to monitor the impacts, we have taken action to stabilise the business and move forward.”
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