The AMP Limited (ASX: AMP) share price printed a new low of $1.88 in early trade today after the embattled financial services group told investors it won't pay a dividend at all for the six months ending June 30 2019.
The prospect of no income at all is another kick in the teeth for AMP shareholders with the group paying a 10 cents per share equivalent dividend just this time last year.
In other bad news, AMP also revealed that it expects the Reserve Bank of New Zealand (RBNZ) will block its planned deal to sell AMP Life (the Australian and New Zealand wealth protection and mature businesses) to New Zealand-based life insurance business Resolution Life.
According to today's announcement the RBNZ has demanded that AMP Life have "separate, ringfenced assets held in New Zealand for the benefit of New Zealand policyholders" as at least one condition to be in place before it approves the deal.
AMP commented: "Recognising that the transaction is unlikely to proceed in its current form, AMP is now working with Resolution Life to determine whether there is a solution that addresses policyholder interests, regulatory requirements and provides certainty of execution. This will require negotiation of new terms and is not certain."
AMP also appeared to suggest that the RBNZ's prudential demands and recent legislation mean any future deal may have to go ahead at a lower price.
The group stated if no deal goes ahead it will continue to run AMP Life itself, with a focus on cost savings and capital efficiency.
The former blue-chip stock is now down a disastrous 85% since pre-GFC highs above $10.
