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AMP narrows outflows for wealth management business

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By Reporter
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3 minute read

The firm has provided a quarterly update on its Australian and New Zealand wealth management businesses as well as AMP Bank.

AMP has reported an increase in assets under management (AUM) for its Australian wealth management (AWM) business, from $124.2 billion in Q4 2022 to $126.2 billion in Q1 2023.

In a quarterly update released to the ASX on Wednesday, the firm noted that it had reduced the net cash outflows in the business unit to $0.6 billion, from $0.9 billion a year earlier.

According to AMP, the growth in AUM for its AWM business reflected positive investment markets but was partly offset by these outflows as well as pension payments of $468 million.

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“In Australian wealth management, assets under management have grown by $2 billion over the past quarter and we have reduced net cash outflows compared to Q1 2022,” said AMP chief executive officer Alexis George.

“In our platforms business, our continued strategic focus on the independent financial adviser market is reflected in inflows from IFAs to the North platform being up 30 per cent on the same period last year.”

AUM on the North platform rose by $1.5 billion compared to Q4 2022 to $62.8 billion. 

AMP said that its platforms business recorded net cash inflows of $152 million, down from $406 million a year earlier, driven by lower internal inflows from Master Trust as well as a 7 per cent lift in outflows versus Q1 2022.

Meanwhile, AMP Bank’s total loan book was reported to have increased by $0.2 billion to $24.2 billion in Q1 23. 

AMP said that residential loan growth was 0.3x system through to the end of February 2023, with “improving momentum” in loan applications and growth in March and early April.

“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,” said Ms George.

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

The update comes after AMP reported an underlying net profit after tax of $184 million for the full 2022 financial year in February, down from $280 million a year earlier. Earlier this month, AMP received its first strike on the adoption of its 2022 remuneration report.

“The completion of the sale of the final AMP Capital business last month has further sharpened our focus on driving the performance of our banking and wealth management businesses,” Ms George said in AMP’s update on Wednesday.

“At the same time, we are progressing our capital and balance sheet review, as well as determining the appropriate operating model and cost base for the business going forward.”

AMP narrows outflows for wealth management business

The firm has provided a quarterly update on its Australian and New Zealand wealth management businesses as well as AMP Bank.

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