Ann: AMP announces expected FY 21 impairments, page-73

AMP may need to raise capital: Citi


There is a chance AMP will need to raise capital to grow with Private Markets likely needing to list with a growth narrative, particularly in infrastructure, according to Citi analysts.

AMP on Friday flagged another $325m post-tax impairment, which lowers its capital position by about $220m.

"However, it has generated ~A$250m of capital from improved hybrid utilisation leaving its proforma 30 June surplus at ~A$440m, which it describes as "sound", Citi said in a note to clients.

"A key question is likely to be whether this will be sufficient to fund planned growth in infrastructure funds post its private capital demerger. Ahead of the likely information rich upcoming 30 November investor day, we retain our Neutral / High Risk call."

Citi is forecasting $594m of after-tax one-offs for the second half with a loss of $418m.

AMP shares last traded at $1.00.