AMP adds billions to book despite ‘intense’ mortgage market

“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.”

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.

“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]