AMP reports loan book growth for 1Q23

AMP Bank has revealed its loan book has increased by $200 million up to $24.2 billion in Q1 2023, with residential loan growth being 0.3 times system growth to the end of February 2023.

The bank stated it has seen improved momentum in loan applications and growth throughout March and early April while continuing to actively manage its portfolio in a “highly competitive market to maintain credit and quality margin”.

Furthermore, AMP completed a residential mortgage-backed securities (RMBS) deal in March 2023 valued at $750 million as part of its wholesale funding strategy, while total deposits decreased by $300 million to $20.6 billion during the first quarter of this year.

AMP stated its credit quality remains strong among a backdrop of economic conditions that have presented difficulties for some borrowers, although there are “currently very few signs of stress in the book”.

“We remain vigilant, and are working with customers to find appropriate solutions where required,” it stated.

AMP Bank chief executive Alexis George said: “We continue to take an active approach to managing the Bank’s loan book, being disciplined in our growth in a highly competitive market to maintain strong credit quality and margin.

“We are conscious of the impact of rising interest rates on customers and continue to focus on providing competitive loan and deposit rates.”

The non-major bank recently announced the acquisition of Nano Digital Home Loans’ residential mortgage portfolio. The technology provider and lender informed customers they will move Nano and Connective Affinity Home Loans to AMP effective from 27 March 2023.

Nano issued a statement on its website that the business “has evolved to being a provider of global leading technology to financial services companies. We are no longer providing a Nano home loan product.”

Nano’s mortgage book consisted of primarily owner-occupied, principal, and interest loans with the acquisition estimated to bring $400 million in loans to AMP Bank’s residential mortgage book.

AMP loan book growth slows

AMP reported its loan book had grown by $500 million over the same quarter last year, which brought its total loan book to $22.6 million.

This has revealed a 60 per cent drop in growth when compared year on year, highlighting a decline in lending in the wake of rising interest rates.

[RELATED: AMP acquires Nano home loan book]