AMP Ltd has reported a 46.6% slump in underlying FY19 profit on FY18, to $485m, which it said reflected a “challenging environment in Australian wealth management, offset by strong earnings in AMP Capital and resilient AMP Bank performance.

Net loss attributable to shareholders of $2.5bn was largely because of $2.35bn (post tax) impairments taken in to tackle “legacy issues” and position AMP for the future.

AMP chief executive Francesco De Ferrari said FY19 was “a year of fundamental reset at AMP”. “We rebased our business, set out a new group strategy and strengthened our capital base to accelerate the execution of our strategy,” he said.

“Amid the reset, AMP Capital had an outstanding year, delivering on its long-term global growth plan. Its reputation as a global leader in real assets investment was further enhanced with two of the largest infrastructure fundraisings in the world during 2019.

He said AMP Bank and NZ wealth management also delivered resilient performances in competitive markets.

De Ferrari said AMP had prioritised client remediation and had made “significant progress”.

“We expect to have completed 80% of the program by the end of FY 20, with completion in 2021, as we have consistently guided,” he said.

AMP had agreed the main outstanding areas of its program with ASIC, including for advisers who were no longer active in the AMP network.

“We remain committed to putting it right for impacted clients as quickly as possible,” De Ferrari said. “In a period of unprecedented legislative and regulatory pressure we have established a strong three-year roadmap for recovery. Our focus is now on delivery.”