AMP's Bank Returns Still Seen as a Key Issue

Dow Jones08-07

0408 GMT - The performance of AMP's bank stops Jarden analysts from turning more positive on the stock despite some positive signs in the June half. With an unchanged neutral rating on the stock, the analysts like the acceleration in platforms and superannuation at the ASX-listed company, especially given softer industry flows. They also feel good about AMP's increased disclosures around its China business, which contributed about a third of group earnings. However, they tell clients in a note that pressure on the bank's net interest margin is a concern, with returns from the unit remaining a key issue. Jarden raises its target price 4.3% to 2.40 Australian dollars. Shares are up 4.1% at A$2.405.

 

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