Banking an AMP oddball
AMP Bank may be one of the few remaining pillars of its owner, AMP Limited, with the forthcoming interim result likely to show the division's profit accounting for up to 30 per cent of group profit.AMP Limited said on Friday that it expected to deliver an "underlying profit in the range of A$490-500 million" for the period to June 2018. It said "the results demonstrate growth across AMP's core growth businesses, Australian wealth management, AMP Capital and AMP Bank, offset by a recent deterioration in experience and one-off capitalised losses in Australian wealth protection."The bad news for the group - much of it flowing from the handiwork of the financial services royal commission, is that the results "are expected to include a provision of A$290 million (post-tax) for potential advice remediation" as well as "increased investment of approximately $70 million (over two years) to upgrade risk management controls and strengthen compliance systems across the business".