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AMP's profit has been hit by its appearance at the royal commission, after which customers pulled $4 billion from its wealth management arm in 2018.
The beleaguered wealth manager's profit plummeted 97 per cent to $28 million after taking a beating at the banking royal commission.
Revenue from ordinary operations dropped 55 per cent to $820 million.
AMP made a profit of $848 million a year earlier.
The company said its underlying earnings, which strip out a lot of one-off costs and gains, were down a more moderate 35 per cent to $680 million.
It also recorded $656 million in customer remediation largely related to misconduct aired at the financial services royal commission.
AMP cut its final dividend from 14.5 cents to 4.0 cents.
Net cash outflows from its Australian wealth management division totalled nearly $4 billion dollars, compared to $931 million in the prior financial year.
AMP said the exodus was due to "the reputational impact of the royal commission" and financial advisors focusing on keeping existing customers rather than bringing in new business.
Superannuation member contributions were down but the company said it retained the majority of its employer super plans.
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j.ballantyne1990-6AQqhLzZaK

AMP sees $4 billion withdrawn from its wealth management

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An AMP planner ran a secret property advocacy business while advising clients to source investment properties from his firm, the banking royal commission has been told.
AMP planner Adam Palmer advised several of his clients to set up self managed super funds to buy investment properties through Property Saint of which he owned 60 per cent.
AMP had hired Palmer in May 2013 despite knowing Palmer had been found to have given poor advice previously.
AMP was also told ahead of Mr Palmer’s employment that the planner had been found by Financial Ombudsman Service in 2009 to have provided inappropriate advice to a client by recommending they invest in Basis Capital.
Basis Capital’s high risk Basis Yield hedge fund collapsed in 2008.
AMP did not conduct an audit of his advice until July 2014 when it was revealed he had at least 10 clients not told of his conflict of interest involving Property Saint.
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<div id="google_ads_iframe_/21671780509/theage/business/bankingandfinance/bankingroyalcommission_3__container__">AMP was yet to notify Mr Palmer's clients, the royal commission heard.</div>
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<div>Property Saint is a Licensed Real Estate Agency that specialises in buying the right property for our clients and property management.</div>
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Property Saint has industry expertise and great customer service. Its real estate sales are facilitated with a Vendor Advocacy service delivering "excellent results."
Established in 2013, Property Saint claimed its provided "an easy solution for clients to buy property for investments and for primary residence." 
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AMP head of advice compliance Sarah Britt told the royal commission AMP would start reviewing Mr Palmer's client files.
"Ideally we would be compensating them now," Ms Britt said, Fairfax Media reported.
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Senior counsel assisting the commission Rowena Orr, QC, grilled Ms Britt about Mr Palmer's advice to clients.
“Do you accept that Mr Palmer’s conduct was dishonest,” Ms Orr asked Ms Britt.
Ms Britt said: “I accept obviously that it’s a matter of grave concern that the adviser hasn’t disclosed his interest in this property business… I accept that it could be interpreted as dishonest.”
AMP also decided to not tell Mr Palmer's new employer Dover Financial Group of Mr Palmer's breaches. ASIC later conducted a review of Mr Palmer’s files at Dover and found multiple breaches of the Corporations Act.
According to ASIC's register of financial advisers, Mr Palmer remains a planner for Dover.
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AMP planner ran Property Saint property advocacy

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AMP Capital has listed a third interest in its 50 Bridge Street property, which is part of the group's $2 billion Quay Quarter Sydney development at Circular Quay.
AMP Capital has appointed JLL and Macquarie Bank to advise on the sale, Fairfax Media advised.
It is expected 50 Bridge Street will attract capital from domestic and international investor
<img src="https://www.urban.com.au/images/2017/09/27/Screen%20Shot%202017-09-27%20at%2012.02.45%20PM.png" alt="">
The NSW government's planned $200 million upgrade at Circular Quay coincides with the projects by AMP Capital, Lendlease, Mirvac and Wanda at the northern end of the CBD.
AMP Capital confirmed recently to The Australian it will kick off the office component of its $2 billion Quay Quarter Sydney development next January after selling close to $400 million worth of luxury apartments in the broader harbourside precinct it is overhauling.
<img src="https://www.urban.com.au/images/2017/09/27/Screen%20Shot%202017-09-27%20at%2012.02.54%20PM.png" alt="">
The office tower is being started as the financial services group has pre-committed to take about 40 per cent of the office space and inquiry on the project is strong.
“We remain on track to commence development in January next year,” AMP Capital managing director, office and industrial, Luke Briscoe said.
Meanwhile AMP Capital’s Wholesale Office Fund (AWOF) will take a stake in Brookfield’s Wynyard Place development in Sydney, agreeing to acquire a 25 per cent interest in the completed development. 
AMP Capital’s separate account client UniSuper has also committed to a 24.9 per cent interest in the completed development. 
A private real estate fund managed by Brookfield Asset Management (NYSE: BAM) has appointed a local subsidiary of Brookfield Property Partners L.P. (NYSE:BPY) to undertake the development of Wynyard Place, which will be a significant mixed use precinct bounded by George Street, Margaret Street and Carrington Street at Wynyard in Sydney’s central business district. 
Wynyard Place’s centrepiece is a 67,000 sqm, 27-level premium grade commercial tower, which is 45 per cent pre-committed by National Australia Bank (NAB).
The development will also include restoration of the historic Shell House and 285 George Street.
In addition, 3,500 sqm of high-end retail will be created together with a revitalised Wynyard Lane and a major upgrade to Wynyard Station’s George Street entrance connecting to a grand transit hall and public concourse.  
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AMP Capital has listed a third interest in its 50 Bridge Street property

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AMP has announced changes to investor lending saying it was to manage its portfolio responsibly and align with regulatory requirements.
Its variable interest rates for new and existing investment property loans will increase by 35 basis points.
For all new investor property loans, the maximum loan-to-value ratio (LVR) is reducing to 50 percent.
This change applies to all new loans with an investment property as security and includes loans to SMSFs.
The changes to interest rates are effective 23 June 2017 for new customers and from 26 June 2017 for existing customers.
The LVR change is from 21 June for new investment property loans and 1 July for SMSF investor loans. Sally Bruce, Group Executive AMP Bank, said the measures are needed to operate within its regulatory obligations.
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AMP raises rates for property investors

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AMP is reducing its mortgage lending to most non-resident borrowers.
AMP is blaming the tough policy on "changes to the market" without specifying their nature or extent.
"Our standards are continually reviewed with market developments to ensure we remain a prudent and responsible lender. Our criteria for overseas borrowers has recently been reviewed in line with this objective," AMP said in a statement obtained by the Australian Financial Review.
It follows complaints among other major lenders about fraudulent applications and fears of money laundering.
Major banks are believed to have only between 2 and 4 percent of their portfolios with overseas investors.
Under AMP's policy, revealed in confidential documents being circulated to major third party distributors, foreign currencies are split into Tier 1 and Tier 2 categories.
Under the new arrangements, 80 percent of income and expenses derived from a Tier 1 category is acceptable and 50 percent from a tier 2 when assessing a loan application.
Tier 1 category are Canadian dollars, Euros, British sterling, Hong Kong dollars, Japanese yen, New Zealand dollars, Singapore dollars and US dollars.  
Tier 2 is the Chinese yuan. Borrowers seeking a loan with Chinese yuan must also provide a 50 percent deposit. For borrowers with Tier 1 currencies the maximum deposit is 30 percent.
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