The AMP Ltd (ASX: AMP) share price has been on a rollercoaster ride today but is currently back in the red.
Its wobbly trade comes after the financial services provider announced a $1.1 billion capital return despite its profits tumbling 24.5% last half, as The Motley Fool Australia reported earlier.
After opening nearly 4% higher, AMPâs stock plunged to a low of $1.12 ÂÂâ representing a 4% fall.
It lifted again to trade at $1.185 — almost 2% higher than its previous close — but has since slumped again and is currently down 0.69% at $1.157.
Letâs take a closer look at todayâs news from the embattled financial services company.
AMP share price falls on $1.1b capital return
The AMP share price is in the red after the company announced a $1.1 billion capital return.
The return will kick off with an on-market buyback worth $350 million.
The other $750 million is expected to be returned to shareholders through a combination of capital return, special dividend, or more buybacks in financial year 2023. Such activities are subject to regulatory and shareholder approval.
AMP reported just $117 million of underlying after-tax profit in the first half. Thatâs a 24.5% drop from that of the prior corresponding period.
It also confirmed it wonât be offering an interim dividend.
AMP Bankâs profits fell 45% last half while its net interest margin (NIM) slipped to 1.32%.
The companyâs Australian Wealth Management divisionâs assets under management (AUM) also dropped to $126.3 billion, mostly due to negative market returns.
AMP CEO Alexis George said the lower profits reflected âa more challenging environmentâ, but noted it was also due to the companyâs actions to deliver competitive offers and set itself up for longer-term success.
The AMP share price is currently 17% higher than it was at the start of 2022. For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 7% in that time.
The post AMP share price slides as $1.1b pledged to investors appeared first on The Motley Fool Australia.
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More reading
- AMP share price in focus amid falling profits and $1.1b capital return
- Are AMP shareholders heading for a $1 billion pay day?
- Here are the top 10 ASX 200 shares today
- Up 13% in July, can the AMP share price maintain its momentum?
- Here’s the good news about bear markets
Motley Fool contributor Brooke Cooper 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 Scott Phillips.
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