Ann: Redemption of Internal Notes issued by AMP Bank to AMP Ltd, page-3

AMP's Capital Surplus Boost Could Give Stock a Boost — Market Talk

AMP's announcement of its redemption of internal notes issued by AMP Bank to AMP Ltd. should give its capital surplus a bump that may boost its stock, say Citi analysts in a note.

The investment bank reckons AMP, because of the redemption, will be left with about A$415 million of capital surplus. "While it may be some time before we know what happens to this, we nonetheless see this as another small positive for the stock," says Citi. At end-December, AMP defined its surplus capital over and above minimum regulatory requirements and its board buffer as A$565 million.

Of this A$55 million is assigned to FY 2023 final dividend and up to A$295 million to its ongoing share buyback. Citi says with the redemption, this should rise to A$415 million.