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Watch AMP (ASX: AMP) share price after revealing $ 325 million in impairment costs

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NS AMP Ltd (ASX: AMP) Stock prices were particularly weak on Thursday.

Stock prices of financial services companies fell 5% to $ 1.05, despite the lack of news.

Unfortunately, Friday’s AMP share price is Presentation this morning.

Why is the stock price of AMP attracting attention?

Friday’s AMP share price will be the focus of attention after announcing that it will recognize an additional impairment cost of approximately $ 325 million after tax in its 2021 financial results.

According to the release, prices that are mostly non-cash reflect a comprehensive review of the balance sheet.

This includes partial impairment of deferred tax assets, write-downs of intangible assets, unfavorable leasing contracts resulting from lower future accommodation requirements, and other impairments and adjustments, including a review of advisory assets.

Management points out that impairment carries forward various costs required by accounting standards.

This release explains that impairment is expected to impact approximately $ 220 million in capital and is recognized as an important item for statutory profits. However, it does not affect AMP’s net income after tax.

AMP also quickly pointed out that the proforma surplus on June 30, 2021 was about $ 440 million and is still in a strong capital position.

Alexis George, CEO of AMP, commented: Fees are primarily non-cash and are related to legacy issues. Our actions ensure that both businesses are in a stronger position to seize future opportunities. “

The stock price of AMP fell 33% in 2021.

Watch AMP (ASX: AMP) share price after revealing $ 325 million in impairment costs

Source link Watch AMP (ASX: AMP) share price after revealing $ 325 million in impairment costs

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