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AMP Bank says its financial advisers were responsible for 24 per cent of all home loans written in the six months to 30 June this year.
The lender yesterday announced that its total loan book had grown by $633 million, or eight per cent, for the half year to 30 June.
AMP’s mortgage book grew from $13.5 billion to $14.6 billion in the six months to 30 June.
“Strong growth was delivered through both the broker- and AMP-aligned adviser channels,” the group said.
“The AMP-aligned adviser channel contributed 24 per cent of AMP Bank’s mortgage new business, up from 23 per cent in the first half of 2014.”
Owner-occupier loans made up 68 per cent of the mortgage portfolio at 30 June 2015, while investment property loans were 32 per cent.
The lender has implemented a number of measures designed to comply with regulatory requirements to reinforce sound lending practices, including increased supervision of risk profiles, investment lending and serviceability of residential mortgages, the bank said in a statement to the ASX yesterday.
“These measures include changes to credit policies relating to, and the availability and pricing of, AMP Bank investment lending products,” it said. “This is expected to slow the growth of AMP Bank investment loans in the second half of 2015 and into 2016.”
AMP Bank’s asset quality remains strong, with mortgages in arrears (90+ days) at 0.44 per cent as at the first half of 2015.
[Related: Banks unlikely to follow AMP in cutting off investor lending]
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James Mitchell
AUTHOR
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.