AMP Wealth Management's underlying profit has fallen for the half-year ended June.
AMP is an Australian financial services company. This is its office in Melbourne. Photo: 123rf
Its result of $19 million is a 16 percent drop on the same period a year earlier.
The value of assets under the company's management fell 3 percent by $377m to $12.4 billion over the first six months of the year.
The company said its revenue had been hit by the costs associated with the sale of AMP Life, the closure of two legacy schemes in FY19 and the economic crisis brought on by the pandemic.
AMP Wealth Management acting chief executive Jeff Ruscoe said with all things considered, it was a strong result.
"Whilst we've seen a bit of a reduction in revenues, we've seen good cash flows in our KiwiSaver business and really importantly through the first half of the year we have been able to respond to our clients through what's been a more challenging time for them."
Ruscoe said since it axed plans to divest AMP Wealth Management New Zealand, it had continued to localise its business and grow its share of the New Zealand market through the deployment of new technology.
"This included the introduction in May of our interactive projections tool, enabling clients to see their projected weekly KiwiSaver and New Zealand Retirement Trust incomes at retirement and understand the impacts of potential changes, helping them take control of their retirement journey."
Ruscoe said the outlook for the next six months was positive.
"We're anticipating that the market falls we've seen will have rebounded and that will help our returns in the next six months and the continuation of our client focus will continue to drive good experiences for our clients and good outcomes for us."
Earlier this year, AMP Wealth Management announced a plan to quit its central Auckland and Wellington offices, because staff wanted to work from home during the lockdown.
Ruscoe said the company was still working its way through existing the leases.
