The AMP Ltd (ASX: AMP) share price is under pressure today following the release of its third-quarter update.
This morning, investors are dodging the financial services company, pushing shares down 1.3% to $1.12. Earlier in the session, AMP shares reached an intraday low of $1.085, slumping 8.4% from yesterday's prior closing price before recovering.
Here's a look at the information behind the move.
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Dragging on the AMP share price
The 174-year-old business is struggling to garner interest for its shares as investors react to the latest pulse check on operations.
As per the update, the company's highlights include:
- AMP Bank total loan book growing $0.5 billion to $25.0 billion
- AMP Bank total deposits up $0.8 billion to $22.1 billion
- Platforms net cash flows of $426 million, down from $748 million
- Platforms assets under management (AUM) flat at $68.3 billion
- Master Trust negative net cash flow of $4.9 billion versus $722 million due to mandate loss
The bank unit of AMP experienced 1.64 times system residential loan growth through to August 2023. However, it was noted this is likely to cool off for the rest of the year, citing a highly competitive market.
AMP CEO Alexis George spoke to the competitive landscape, stating:
We continue to actively manage the Bank portfolio in what remains a highly competitive environment, particularly as the Term Funding Facility (TFF) refinancing continues across the market. We expect to see subdued growth for the remainder of the year as we continue to manage Net Interest Margin (NIM), with full year NIM now expected to be below previous guidance of 1.30-1.35%
A downwardly revised net interest margin wouldn't be doing any favours for the AMP share price today.
Shifting gears, AMP's Platforms cash flows declined due to reduced non-superannuation investments. On a positive note, the company's North platform saw inflows from Independent Financial Advisers (IFAs) increase 17% to $565 million.
The AMP share price is down 14.5% on a year-to-date basis. Interestingly, the company trades a discount to its book value. The current price-to-book (P/B) ratio stands at 0.8 times book value.
