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much to my surprise the market agreed with me this time
New digital bank division is expected to be Net Profit After Tax (NPAT) and Return on Capital
(ROC) accretive for AMP Bank from 2027 onwards
given AMP's history of getting indigestion from 'game-changing acquisitions ' i am heading for the back-row seats with a bucket-load of popcorn and an armful of drinksG Canavan has conceded his strategy with AMP isn't paying off and that a profitable break-up of its parts isn't going to happen. This is due to its intended investment into a digital banking arm for servicing small businesses. He has demoted it to hold with the plan of selling if/when it rallies from its oversold condition.
AMP - The Story Has Changed
Excerpt Quote: "But the bottom line is that I don’t think you should hang around in AMP waiting for this strategy to pay off. This is one to follow from the sidelines and you can always get back in down the track.
The strategy is an interesting one. If it follows in the path of the UK’s Starling, it will be the making of a ‘new AMP’. But strong profit growth is still a few years away.
And anyway, this wasn’t the initial rationale for buying AMP in the first place"
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