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AMP’s wealth management business generated “more than $2 billion” in net cash flows in 2008, helping the group to forecast an overall underlying profit of about $800 million for financial year 2008.
Underlying profit, AMP’s key measure of business profitability, is forecast to be down $82 million on the 2007 result, but in line with the group’s expectations.
Statutory profit for 2008 is forecast at $580 million, including an expected investment income market adjustment loss of around $260 million.
AMP chief executive Craig Dunn described the wealth management cash flows as a strong result in a difficult year. “These positive flows have seen our market continue to grow over the year.”
However, total net cash flows for AMP’s financial services for the three months to December 31 in 2008 were $252 million, compared with $524 million for the fourth quarter of 2007.
This fall reflected much lower discretionary super contributions in the wake of volatile investment markets and subdued investor sentiment, Dunn said.
Employer super contributions remained steady, however, reflecting AMP’s strong position in mandate super, he said.
The AMP board is likely to declare a dividend of about 16 cents a share when it meets to approve its audited full-year 2008 results next week, bringing its total dividend for the year to 38 cents a share — lower than expected.
