AMP merges groups to win back support

AMP will merge its banking and wealth management divisions as the embattled group takes more steps to restore its fortunes and win back the support of investors.

It is also is elevating the head of its wealth management operation, Alex Wade, to the role of chief executive at the combined division, to be called AMP Australia.

Group chief executive Francesco De Ferrari said yesterday combining the two units reflected the company’s “clientled strategy” and would “drive a more integrated organisation”.

“The strategy we set out in August is focused on reinventing AMP to be a client-led, simpler and more growth-oriented business,” he said.

Sally Bruce, who leads AMP Bank, will exit the company on November 1 and will be replaced by Rob Finch, who is managing director of wealth products and platforms now. He will report to Mr Wade.

Mr De Ferrari said “closer integration” of the divisions was already part of AMP’s long-term plan. But Ms Bruce’s decision to step down meant the company could carry out the internal reorganisation faster, he said.

The merger received a mixed reaction among investors yesterday, and AMP shares fell 0.5c to a fresh lowest closing price of $1.59½. AMP’s shares have been pummelled since the royal commission, sinking from more than $5.40 in March 2018.

Merlon Capital Partners portfolio manager Hamish Carlisle said the new management team was “untested”.

“AMP bank has been a strong performer notwithstanding limited integration with the rest of the group,” Mr Carlisle said.

The onus was on the new team “to maintain this momentum”, he said.