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The number of new loans written by the non-major bank has dropped during 1H24.
Non-major bank AMP Bank has announced that a ‘tactical reduction’ in new loans written has resulted in a drop of 6.7 per cent in its residential mortgage book during 1H24.
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This has equated to AMP Bank’s residential mortgage book dropping to $22.7 billion from the $24.3 billion recorded in 1H23.
Although AMP’s 30-plus and 90-plus day arrears rose during this period, this is broadly in line with the industry and its credit quality remains strong.
AMP Bank’s 30-day arrears rose to 1.72 per cent from 1.29 per cent in December 2023, while 90-day arrears lifted to 0.88 per cent from 0.62 per cent.
The non-major bank reported that 3 per cent of its mortgage customers were behind on payments, compared to 14 per cent on time (down from 15 per cent in December 2023).
However, 40 per cent of the bank’s mortgage customers were one to three months ahead on their repayments, slightly down from the 43 per cent recorded in December, while 16 per cent were four to 12 months ahead (up from 14 per cent) and 27 per cent were over 12 months ahead (up from 26 per cent).
Commenting on the bank’s results, AMP CEO Alexis George said: “We have made good progress this half on our key strategic commitments, and we have positive momentum heading into the second half of the year.
“We have continued to deliver on simplification and cost reduction, while also driving growth in our wealth businesses and returning capital to shareholders.”
Furthermore, George said that the bank’s new small-business and consumer digital bank is on track to launch in the first quarter of 2025 in order to help diversify revenue and funding mix.
The new digital bank was announced in November 2023 aimed at catering to the needs of small businesses and sole traders.
According to the non-major bank, its design will prioritise tailored functionalities and features to assist small-business owners in effectively managing their finances on the go, directly from their mobile phones.
This period also saw AMP Bank appoint Travis Hall as its new national sales manager for broker distribution.
Hall is responsible for spearheading the bank’s business development manager (BDM) team, managing relationships with brokers, advisers, and aggregators to drive growth in both lending and deposit sectors.
[RELATED: AMP appoints new broker distribution sales manager]
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