Financial services provider AMP (ASX:AMP)
expects to recognise additional impairment charges of around $325 million after tax in its 2021 financial year results.
The charges, which are mainly non-cash, reflect what the company described as a “comprehensive review of the balance sheet”. They include partial impairment of deferred tax assets, a write-down of intangibles, onerous lease contracts arising from lower future accommodation requirements and other impairments and adjustments.
The impairments are expected to have an impact on capital of around $220 million and will be recognised as a significant item against statutory profit in AMP’s FY21 financial results.
AMP has previously also announced FY21 provisions for post-completion adjustments from the sale of its life insurance and mature business of $65 million and remediation of superannuation matters of $45 million.
“As we have developed our strategies for the post-demerger businesses of AMP and Private Markets we have reviewed our balance sheet to ensure that assets recorded are in line with the future strategic direction,” said CEO Alexis George.
Shares in AMP (ASX:AMP)
are trading 1.4 per cent lower at $1.03.