Australia's AMP underlying profit down 2 pct

SYDNEY, Aug 28 (Reuters) - AMP Ltd (AMP.AX: Quote, Profile, Research, Stock Buzz), Australia's third-biggest retail fund manager, reported a 2 percent fall in first-half underlying profit, and said market conditions will make delivering growth in the short term challenging.

AMP said on Thursday its underlying profit fell to A$437 million ($377 million) for the six months ended June. The result beat average projections from five analysts for an underlying profit of A$417.8 million.

AMP shares have fallen about 35 percent so far this year, while the benchmark S&P/ASX 200 index has lost 21 percent fall in the same period. (Reporting by Mette Fraende)