AMP Bank drags down group quarterly results
Make us a preferred source
Make us a preferred source on Google
The news: AMP’s quarterly results have been further dampened by its banking results in a challenging economic environment.
The numbers: AMP Bank’s total loan book was down $0.9 billion to $23.5 billion in the March quarter from the previous quarter, while total deposits grew $0.1 billion to $21.4 billion.
However, AMP’s platforms net cashflows were up 32% to $201 million year on year.
Its platforms assets under management (AUM) increased $3.2 billion to $74.3 billion compared to the previous quarter. AMP said positive net cashflows and stronger investment markets contributed to its platforms AUM increase.
Superannuation and investments assets under management increased $2.2 billion to $54.1 billion, compared to the previous quarter due to positive investment markets. Its net cash outflows fell to $371 million from $610 million year on year. Its pension payments increased $13 million to $89 million from the previous quarter, which reflected the recent increases to minimum drawdown limits.
AMP's New Zealand wealth management net cash outflows were at $5 million, down from $15 million the year prior, while its AUM increased $0.3 billion compared to the previous quarter.
The context: Earlier this year in its annual report, the company said AMP Bank had been battling a challenging and competitive market which had impacted its margins.
Today, AMP said it was still navigating headwinds faced by AMP Bank by “carefully managing our loan and deposit books to help address margin pressures”.
What they said: AMP chief executive Alexis George said: “We are making good progress on the development of our digital small business and consumer bank offer, launching in Q1 25, to lessen funding risks over the medium term by broadening the customer base and introducing a compelling transaction account offer that will help diversify and build deposits”.
The source: ASX announcement
