At time of writing, shares of AMP Limited [ASX:AMP] are down 3.9%, trading at $2.36 per share.
Compared to the Big Four, it has been a particularly rough year for AMP:
The latest bad news relates to the remediation bill for customers they provided bad advice to, or were charged for no service.
Share price down after AMP CEO explains bigger remediation bill
In evidence given to the Banking Royal Commission yesterday, interim CEO Michael Wilkins explained that AMP expects to spend $1.18 billion to compensate customers.
He added that the $290 million it had initially set aside was not the real figure due to accounting rules.
Perhaps the most damaging thing about Wilkins testimony, is that he didn’t rule out the possibility of finding further cases of fees-for-no-service among the review of 217,000 customer files.
Does it get any worse for AMP’s share price?
Each time Markets & Money has taken a look at AMP over the past few months, it has gone from bad to worse.
Part of the problem is that the company continues to adjust figures, whether it be in relation to compensation or cutting fees.
It has recently moved ahead with its plan to sell its life insurance arm — announcing the sale to British Resolution Life at almost a fifth below book value.
Investors could be hoping the Macquarie takeover eventuates because restructuring will take a significant amount of time to produce results.
AMP’s new CEO, Francesco De Ferrari, takes over from Wilkins on 1 December this year.
For Markets & Money
PS: AMP is eerily similar to these five ‘fatal’ stocks we detail in our free report. It’s available here.