Alexis George

AMP will has written down $68 million in post-tax impairment charges ahead of its half-year results related to reduced office space and the cancelled advice software program.

In an update to the ASX on Wednesday morning, AMP said the impairments will result in a reduction in AMP’s FY22 statutory profit, but not underlying net profit after tax, which AMP uses to benchmark the overall health of the business.

Professional Planner understands the advice software was related to new programs AMP had been working on to support advisers. While the organisation will not continue the cancelled programs, they intend to pursue other opportunities to develop technology.

AMP’s decision to reduce surplus space was due to a continued commitment to hybrid working models.

AMP chief executive Alexis George said the organisation remained focused on re-building the balance sheet.

“Our strategic priorities to simplify and reposition the business will require us to recognise some impairments,” she said in the ASX release.

“These items do not impact underlying NPAT or have a material impact on AMP’s capital position or liquidity. This action will help to ensure we are well positioned for the future, to deliver on our strategy as a focused wealth management and retail banking business in Australia and New Zealand.”

AMP wrote down other one-off items a year ago ahead of the demerger with its capital markets business.

The charges include:

Pre-tax ($m) Post-tax ($m)
Onerous lease contracts 53 36
Write-down of assets related to advice software solution 32 25
Capitalised cost impairments 9 7
Total 94 68

Source: AMP

AMP will announce its FY22 results on 16 February 2023.