Shares in Australia’s AMP (ASX:AMP) dropped as much as 6.4% to A$1.03, following the announcement that its half-year net profit after tax fell short of JP Morgan’s estimate.

The wealth manager reported a profit of A$112 million, compared to the estimated A$124 million.

AMP’s earnings were challenged by competition and high interest rates, eating into profit margins, according to CMC markets analyst Tina Teng.

Despite higher earnings from its banking unit, AMP’s weak performance in wealth management amid heightened market volatility resulted in the stock declining by 16.4% this year, as of its last close.

AMP is a leading Australian wealth manager.