The AMP Ltd (ASX: AMP) share price has fallen off a cliff since the start of September. This comes after the financial services company struggles with weak investor sentiment that has been going on since 2018.
At Tuesday’s closing bell, AMP shares continued their descent to 93 cents, down another 1.59%.
How did AMP perform in FY21?
AMP reported its half-year results on 12 August, highlighting a rebound in its financial metrics.
The company achieved a Net Profit After Tax (NPAT) of $181 million, up 57% on the prior corresponding period. This was largely driven by an increase in Australian wealth management assets under management (AUM) of $121 billion, up 8%.
However, in a positive light, Australian wealth management net cash outflows hit $2.7 billion. A massive improvement compared to the $4 billion in net cash outflows registered in H1 FY20.
Furthermore, controllable costs (excluding AMP Capital) came down 6% to $387 million. The positive outcome was underpinned by cost out benefits partly offset by structural cost increases, variable remuneration and reinvestment spend.
First-half total eligible capital resources stood at $452 million above target requirements, down from $521m at 31 December 2020.
The board decided to maintain a conservative approach to capital management and dividends until its demerger and future strategies are finalised. As such, AMP did not declare an interim dividend for the period.
What happened to the AMP share price?
In the weeks following AMP’s results, its shares have tracked downwards to hit a multi-decade low of 88.5 cents yesterday.
When looking at the last 12 months, the AMP share price has fallen more than 30%, with year-to-date also down around 40%. The company’s shares have lost about 80% of its wealth since early 2018.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 24% from this time last year and is up 10% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.
Undoubtedly, AMP shares and the ASX 200 have moved in completely opposite directions.
AMP presides a market capitalisation of roughly $3.04 billion and has approximately 3.2 billion shares on its registry.