AMP Bank’s half-year results have revealed a softer loan book, with lending dynamics shifting.
AMP Bank, the retail and specialist lender owned by AMP Group, reported that its total loan book had eased in the six months to the first half of the financial year 2026, even as credit quality and funding settings remain broadly stable.
Loan balances edge lower
Total loans slipped to $23.73 billion at 1H26, down from $24.10 billion in 2H25, though still slightly higher than the $23.52 billion recorded a year earlier in 1H25.
Residential mortgages, which make up the bulk of AMP Bank’s book, fell to $23.61 billion from $23.92 billion in the prior half; however, it remained above the $23.33 billion level seen in 1H25.
Business finance loans saw a more pronounced pullback, declining to $127 million from $176 million in 2H25 and $195 million in 1H25, indicating a sustained run-off in that portfolio.
Broker-originated residential flows stayed dominant, with the channel accounting for 94 per cent of new mortgage volumes, only a touch below 95 per cent in both 2H25 and 1H25.
AMP Bank described the overall lending picture as broadly steady, while acknowledging the pressure in the mortgage market.
“Lending was stable on the prior period with competition in the mortgage market offset by an increase in higher return segments,” AMP Bank said.
Within the home loan book, 40 per cent of balances are investor loans and 60 per cent owner‑occupier, while 20 per cent of mortgages are on interest‑only terms and 80 per cent are principal and interest.
Asset quality, margin, and profit
Arrears metrics showed a modest uptick compared with the previous half.
Mortgages 30-plus days in arrears rose to 1.19 per cent, up from 1.17 per cent in 2H25, but down from 1.44 per cent in 1H25.
Mortgages 90-plus days in arrears climbed to 0.71 per cent, from 0.69 per cent in the prior half.
Despite that, loss experience remains low, with total loan bad debts written off across residential and business finance at $1.4 million for the half.
Dynamic loan‑to‑value ratios improved to 53 per cent from 55 per cent, while the existing business weighted average LVR was 63 per cent, slightly higher than 62 per cent in 2H25.
Net interest margin slipped by 1 basis point to 1.25 per cent, from 1.26 per cent in 2H25, reflecting competitive pricing and funding costs.
AMP Bank’s funding mix comprised 61 per cent deposits, 6 per cent wholesale funding and subordinated debt, 30 per cent securitisation, and 3 per cent equity reserves.
AMP Bank’s underlying net profit after tax (NPAT) fell to $20 million, down from $30 million in 1H25.
[Related: 40-year investor loan with 10 years of IO launches]
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