The AMP Ltd (ASX: AMP) share price has failed to outperform the ASX in recent times, trading at near multi-year lows.
After reporting a mixed full-year result last month, the financial services company is struggling with positive investor sentiment.
At the time of writing, AMP shares are fetching for 96.5 cents, up 2.66%.
In the past month, the company’s shares have fallen 4.4%.
What’s happened to AMP recently?
Investors took the AMP share price to levels stretching since early January this year. This came from the company delivering its financial scorecard for FY21 on 10 February.
AMP reported that its Australian wealth management total assets under management (AUM) increased to $134 billion, up 8% on FY20. This came off the back of improved investment markets and a reduction in net cash outflows.
In AMP’s New Zealand wealth management portfolio, AUM decreased to $12.2 billion, down $200 million year-on-year. The result was driven by conclusion of its term as KiwiSaver default provider, contributing to a net outflow of $600 million.
Nonetheless, AMP recorded a statutory net profit after tax (NPAT) loss of $252 million, compared to a $177 million profit in FY20. Management stated that the impact was primarily due to previously announced impairment charges, mainly non-cash write-downs
The demerger program is scheduled for competition by the middle of FY22. This will see the transition of MAG from AMP Capital to AMP Australia, creating a superannuation and investment platform business.
In an effort to maintain a conservative approach to capital management, and support business transformation, no final dividend was declared for FY21.
The board stated that its capital management strategy and payment of dividends will be reviewed following the demerger.
How does the AMP share price compare to the financial sector?
Over the last 12 months, the AMP share price has moved 32% lower, with year to date down by around 4%. The company’s shares hit a multi-decade low of 85.5 cents in late January, before moving in circles.
In contrast, the S&P/ASX 200 Financials Index (ASX: XFJ) has gained 9.5% from this time last year and is up 2.5% year to date. The sector also registered a 52-week high of 6,956.4 points in late October.
Undoubtedly, AMP shares are lagging behind the Financial Index which has continued to accelerate since March 2020.
Based on today’s price, AMP commands a market capitalisation of roughly $3.18 billion, with approximately 3.27 billion shares on issue.
The post How is the AMP (ASX:AMP) share price performing against the financial sector lately? appeared first on The Motley Fool Australia.
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More reading
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- Has the AMP (ASX:AMP) dividend gone the way of the dodo?
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- Why did the AMP (ASX:AMP) share price leap 8% in February?
- AMP (ASX:AMP) share price lifts as new suitor for capital arm emerges
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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