AMP Bank has unveiled an intention to become the bank of choice for both mortgage brokers and financial advisers, doubling its value through an already strong existing network.
At AMP Group’s Investor Strategy Day yesterday (25 May), group executive of AMP Bank,
Sally Bruce, discussed the group’s recent financial results and went over where the bank currently was and where it wanted to be in the future.
“We have a very strongly performing bank,” she said, pointing to a 5% growth in both mortgages and deposits over the first quarter this year.
She expressed confidence that this performance would continue as well. While established broker relationships targeted over 50% of all AMP home loans, less than 1% market share indicated there was plenty of untapped potential out there.
“We have only begun this growth journey and the opportunity to double our market share is very real.”
Brokers were not originating loans with the bank because of price but rather on what AMP was offering, she said.
Regarding risk, Bruce noted that AMP had a strong balance sheet position and had grown its loans and deposits to support this.
The quality of the mortgage book underpinned this performance, she said, highlighting peer comparisons of home loan arrears which put AMP Bank’s performance at 35% better than the average of the majors and 20% better than that of its peers.
“We are in a position to become the intermediated bank of choice,” Bruce said. “AMP is focused on helping more Australians own tomorrow and achieve their goals.”
Finally when asked about S&P’s recent downgrade of AMP Bank along with 22 other lenders, Bruce said this was “no impediment” since the move merely aligned the bank with other lenders such as Macquarie.
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