At time of writing, AMP Limited’s [ASX:AMP] share price is down again, this time 1.91% on the back of heavy volume.
It is currently trading at $2.32.
AMP’s share price has been mauled by the Banking Royal Commission, as it restructures its business.
Its one year return is now at -53.4%.
Here’s how it’s been doing over the past three months:
Why AMP’s share price went down today
This time around, AMP has been hurt by a decision yesterday that its banking arm would reduce or remove 20 fees.
The goal of this is to simplify its product offering to customer after losing customers from its flagship wealth management division.
It has now admitted to the royal commission that it charged customers for advice they never received, mislead regulators, and charged dead people for life insurance.
On its website, AMP said that the fees being reduced were one-off transaction fees, and that more simple fees would be in place next year, including mortgage fees.
Is this the new bottom for AMP?
It appears as if AMP is stuck in a bind.
If it moves to clean up its act, its share price gets hit.
If it resisted the findings of the royal commission, it could also get hit.
The question then is — is this the final announcement to come out of the company that will have a negative impact on its share price?
It has just completed its portfolio review and more changes could be in the offing.
Meanwhile, the royal commission is still a long way from over and the whole banking sector is under a cloud as profitability and tightening credit conditions comes into focus.
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