The cost of years of bad behaviour at wealth manager AMP are mounting, with last year's net profit set to almost disappear, eaten away by the cost of attempting to fix the scandals.

Key points: AMP says additional remediation advice costs arising from the royal commission are now expected to be $200m

AMP says additional remediation advice costs arising from the royal commission are now expected to be $200m $14m of the new costs are associated with customers' lost earnings

$14m of the new costs are associated with customers' lost earnings Shares crumble again on news of the profit downgrade

In a statement to the ASX, AMP further downgraded its already weak profit guidance, reporting that its net profit for the 2018 calendar year would be "approximately $30 million" — 96 per cent lower than the $841 million profit reaped the previous year.

Underlying profit — which strips out one-off profits and losses — will also be hammered, dropping from $1 billion in 2017 to $680 million last year.

Beaten up shareholders will see their final dividend crumble to 4 cents per share from 14.5 cents, while the company's share price has more than halved since the banking royal commission started early last year.

The full results will be released to the market on February 14.

Life insurance sale also hits bottom line

AMP said net profit had hit by "a range of previously advised items", in effect shifting estimated costs towards greater certainty, requiring provisions to made.

"These include the costs arising from the royal commission response, portfolio review, increased investment in risk, governance and controls, and advice remediation," it told investors.

The additional costs are far from surprising given the numerous scandals uncovered at the royal commission, including the systematic charging of customers for advice not given, or charging customers for services long after they had died.

The horror year saw the departure of chief executive officer Craig Meller, chair Catherine Brenner, the company's chief legal counsel and a large chunk of the board.

The additional costs for "advice remediation" are now expected to be around $200 million in 2018, comprising $186 million to fix systemic shortcomings and $14 million in repaying customers' lost earnings.

The profit downgrade also reflected the poor performance of AMP's wealth protection business and, to a large extent, justified the recent decision to sell out of a sector that has continued to struggle.

AMP said it would book around $105 million in lost earnings from the sale of the Resolution Life insurance business.

The impact of the additional remediation provision, and changes in wealth protection and life insurance, chewed into AMP's capital position and led another $240 million post-tax hit.

The market was not impressed, with AMP tumbling a further 7 per cent to $2.36 in early trade (by 11:00am AEDT).