AMP Bank’s loan book increases by $300m during Q3

AMP Limited (AMP) has released its figures for Q3 of 2021, noting that AMP Bank’s total loan book reached $21.3 billion during the period, marking an increase of $300 million. 

According to AMP, this growth was the result of competitive owner-occupied pricing. 

In addition, the non-major bank said it saw residential loans grow at a rate approximately 1.1 times higher than that of system growth throughout July and August. 

The total number of loans also increased, rising from 20,974 to 21,262. 

However, this change in figure was supplemented by residential mortgages growing by a figure of 311, as practice finance loans decreased from 355 to 332 during Q3. 

Compared to the previous quarter, AMP Bank also reported that the number of total deposits (including customer deposits, at-call deposits, term deposits, other platform deposits, and super deposits) grew from 16,120 to 17,146, reflecting an increase of $1 billion and Q3 deposit figure of $17.1 billion.

Subsequently, AMP Bank’s deposit-to-loan ratio rose by 4 per cent during Q3, growing from 77 per cent to 81 per cent.  

Speaking of the figures from this quarter, AMP chief executive Alexis George said that with most of Australia in lockdown during this period, “our businesses have focused on supporting customers, continuing to drive forward our simplification and preparing for our demerger next year”.  

“AMP Bank has delivered another strong quarter, amid a very active market, helping more of our customers to purchase a home,” he added.  

“We’ve progressed our transformation of wealth management enabling us to deliver superannuation fee reductions at the start of Q4 as we committed. We’ve also continued to invest in our North platform, which has again grown assets under management.” 

In addition to these loan book figures, assets under management (AUM) remained steady compared to the previous quarter at 131.2 billion. 

However, AMP has stated that positive investment market returns offset the impact of net cash outflows. 

The average AUM increased during this quarter by $3.7 billion to now reach $132.4 billion.  

A net cash outflow figure of $1.4 billion was also recorded, improving from the outflow figure of $1.8 billion during the third quarter of 2020. 

AMP Capital’s AUM however reduced by 4 per cent to $180.3 billion compared to the previous quarter, a decline that AMP said primarily reflects an increase in net cash outflows. 

According to the financial group, the net cash outflows during Q3 reached $12 billion. During Q3 2020, this figure was $2.4 billion. 

“AMP Capital’s cashflows primarily reflected the internal outflows from [New Zealand wealth management], after the transition of the mandate to an index-based investment strategy, announced earlier this year, in line with market trends,” Mr George added. 

“Our Private Markets teams have continued to invest on behalf of our infrastructure clients and build its pipeline of opportunities. 

“We have a clear focus on our priorities ahead, including to deliver the demerger of our Private Markets business from AMP in the first half of next year.”

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