iscover
iscover 
In a trading update to shareholders, AMP Ltd has reported sharp falls in the value of its total assets under management (AUM) across both its wealth businesses and AMP Capital over the first quarter of 2020 (1Q20).
AMP’s Australian wealth business recorded an $18.2 billion slide (13.5 per cent) in AUM, from $134.5 billion in the three months to December 2019 to $116.4 billion as at 31 March 2020.
The group’s New Zealand wealth business also shed billions, with AUM falling by $1.2 billion (9.8 per cent), from $12.4 billion to $11.1 billion over the same period.
Meanwhile, its international division, AMP Capital, saw its AUM plunge by $10.7 billion (0.4 per cent), from $203.1 billion to $192.5 billion.
AMP group CEO Francesco De Ferrari attributed the weak result to market volatility caused by the ongoing COVID-19 crisis.
“Markets in Q1 were extremely volatile particularly in March, with significant falls in equities, fixed income and key commodities impacting our assets under management,” he said.
“We have seen some recovery since the quarter-end but expect market volatility to continue and the economic impact of the pandemic to emerge over the remainder of the year.”
AMP Bank was the only division to record growth, with its total loan book rising by approximately $162 million (0.7 per cent) to $20.8 billion.
According to the group, the improvement in its loan portfolio was primarily driven by “continued growth in residential mortgages”.
The bank also received strong deposit inflows, growing its deposit book by approximately $700 million (5.4 per cent) to $15.2 billion, which AMP said was in line with its strategy to “become more deposit-led funded”.
Mr De Ferrari concluded: “Amid the uncertainty, I’m pleased we are showing up strongly for our clients and demonstrating the resilience of our business.”
[Related: NAB earnings hit by $1.14bn in new costs]
ISCOVER 
