Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

AMP adds billions to book despite ‘intense’ mortgage market

amp   amp
Reporter 4 minute read

The non-major lender has attributed strong growth in owner-occupied lending to the $2.3 billion worth of mortgages it added to its loan book over the 2017 financial year.

The 14 per cent increase now sees AMP Bank’s total residential loan book valued at $18.9 billion.

“Residential mortgage competition, particularly in the owner-occupied market, remained intense,” the bank said.

“Within this environment, AMP Bank delivered residential mortgage book growth of $2.3 [billion] in FY17 to $18.9 [billion], [driven] by growth in owner-occupied lending.”

Advertisement
Advertisement

However, AMP’s CEO and managing director, Craig Meller, noted that FY17 was a “year of two halves”, stating that despite “strong mortgage growth” in the first half of the year, the bank’s loan volumes were “down slightly”, particularly in the interest-only space, as a result of macro-prudential measures imposed by regulators.

“We’re expecting volumes to gradually recover over the first half of 2018,” the CEO added.

Further, the bank’s practice finance loan portfolio experienced slight negative growth, falling from $581 million in FY16 to $575 million in FY17.

Meanwhile, AMP Bank’s group executive, Sally Bruce, noted the bank’s intent to further develop its service levels, with new broker and adviser accreditation up by 7 per cent from 2016.   

“We are seeing strong demand from customers for non-big bank alternatives providing increasing opportunity for our expanding network of brokers and advisers. Customer numbers are up by 8 per cent,” Ms Bruce said.

PROMOTED CONTENT


“We’re very proud of our service levels where we have made significant improvements.

“In 2018, we will be driving ongoing improvements to efficiency and service to help support our growing network of brokers and advisers and to prepare the bank for the next stage of growth.”

Overall, AMP Bank’s operating revenue grew by 17 per cent from $120 million in FY16 to $140 million in FY17.

[Related: AMP Bank announces executive departure]

AMP adds billions to book despite ‘intense’ mortgage market
amp
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

amp

 

more from the adviser
Greater Bank Newcastle Perm merger

Breaking News

Bank CEO pledges to maintain broker offering following merger

The CEO of Newcastle Permanent has said the lender will continue ...

Money jar

Breaking News

bcu launches $5k cashback offer

The customer-owned bank has released a cashback offer for new and...

RBA

Breaking News

RBA makes cash rate call as lockdown drags on

The central bank has delivered its rate decision for August as th...