AMP Bank’s loan portfolio reaches $22.6 billion
The secondary bank saw growth, albeit marginal, in loans in the first quarter of the calendar year.
According to AMP Limited’s (AMP) cash flow and assets under management (AUM) figures for the first quarter of 2022, AMP Bank’s loan portfolio increased by $500 million during the quarter, increasing its total loan portfolio at $22.6 billion.
By comparison, the non-major bank said its loan book grew by $300 million in the third quarter of 2021.
This latest development was accompanied by an increase in total deposits, which increased by $1.7 billion in the quarter to a total of $19.5 billion.
AMP said this reflected a deposit-to-loan ratio of 86% and that the majority of these flows came from “customer deposits”.
In addition, the results indicate that AMP Bank’s residential loan growth, based on February APRA market data, increased by twice system growth in the quarter.
According to AMP Managing Director Alexis George, this upward momentum was associated with the bank’s focus on simplification.
“Our investments in technology to simplify and improve the lending experience have helped AMP Bank generate strong growth in a highly competitive market, while helping customers own their own homes and invest in real estate” , she said.
Since March 21, the bank has been using digital signature technology in an effort to speed up its home loan approval process.
In February, AMP Bank confirmed that it would launch a direct-to-consumer digital mortgage in the market in 2022.
Speaking to The Adviser in December, AMP Bank chief executive Sean O’Malley said the broker channel was “really important” to the bank and aimed to improve both lead times Execution and Broker Experience in 2022.
“Our ‘how’ on those two things is to leverage the technology more,” O’Malley explained.
However, figures from AMP Limited also noted that assets under management for AMP Capital, now known as Collimate Capital, declined on a normalized basis by 60 basis points from the fourth quarter of 2021 (52 .8 billion dollars) to now reach 52.5 billion dollars.
AMP Limited said the decline reflected its “strategic initiatives” for the first quarter of the calendar year.
These included the sale of its global equity and fixed income (GEFI) business to Macquarie Asset Management, its infrastructure debt platform to Ares4, as well as the transfer of its multi-asset group (MAG) to his Australian wealth management business.
These three actions were completed during the quarter.
“At AMP Capital, we have been focused on delivering on our strategic objectives with the divestiture of the commercial debt and infrastructure platform GEFI, alongside the transfer of the MAG capability to our wealth management business,” said Ms. George.
Ms George added that following the group’s recent transactions in Collimate Capital’s domestic real estate and infrastructure capital business with Dexus Funds Management and its international infrastructure capital business with DigitalBridge Investment Holdco, AMP has been set up for a “strong and sustainable future” with a clear strategy. to grow both AMP Bank and its wealth management business.
[Related: AMP targets faster turnarounds with new tech]
Sam Nichols is a journalist at The Adviser and Mortgage Business. His reporting has appeared in a range of outlets including ABC News, SBS’ The Feed and VICE.