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, AMP's stock plunged to a low of $1.12 – 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.
Let's take a closer look at today's news from the embattled financial services company.
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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. That's a 24.5% drop from that of the prior corresponding period.
It also confirmed it won't be offering an interim dividend.
AMP Bank's profits fell 45% last half while its net interest margin (NIM) slipped to 1.32%.
The company's Australian Wealth Management division's 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 "a more challenging environment", but noted it was also due to the company's 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.
