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AMP-aligned advisers now contribute 23 per cent of the bank’s new mortgage business, up from 20 per cent in the first half of the last financial year.
While the lender managed to grow its residential loan book by 9.3 per cent, its net interest margin fell from 1.39 per cent to 1.35 per cent in the 12 months to June 30.
The contraction reflects strong price competition and a higher proportion of fixed-rate mortgages, according to an AMP statement.
Released yesterday, the bank’s full-year results show asset quality remains strong with mortgages in arrears (90+ days) at 0.44 per cent, down from 0.51 per cent in the first half of 2013/2014.
AMP Limited reported a net profit of $382 million for the half year to June 30, down three per cent on $393 million reported for the first half of 2013/2014.
Underlying profit was $510 million compared with $440 million for the first half of 2013/2014, up 16 per cent half on half, with double digit growth in operating earnings for all contemporary businesses.
“This is a solid result with 16 per cent underlying profit growth,” AMP chief executive Craig Meller said.
“We have made good progress on our strategy to be a leaner, more efficient and increasingly customer-driven organisation.
“We are continuing to transform our core Australian business with a market-leading mobile platform launched and a new operating model in place to focus on the customer and to drive sustained growth as the Australian wealth industry doubles in size by 2022,” he said.
Mr Meller said it was particularly pleasing to see AMP’s offshore strategy already delivering good cash flow while building strong growth potential in the long term from partnerships with China and Japan.
“The wealth protection business is stabilising, with the improvement plan delivering encouraging results however, we have more work to do,” he said.