Summary: Australian wealth manager, AMP, faces lower growth expectations and a fall in annual margins due to high interest rates impacting earnings.
Shares in Australian wealth manager, AMP, reached a more than two-month low on Wednesday as the company anticipates lower growth for the rest of the year and a decrease in annual margins. AMP stated that it expects its net interest margin to be below the previous guidance level of 1.30% to 1.35% for the full year ending in December. The firm’s platform net cashflows for the third quarter fell to A$426 million, compared to A$748 million a year ago. CEO Alexis George attributed the drop in net cashflows to a decline in discretionary investments, as clients respond to the current macro-economic environment. AMP shares fell as much as 4.4% to A$1.085, marking their lowest level since August 10th.
Tags: AMP, Australian wealth manager, annual margins, interest rates