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AMP Limited provides Q1 22 AUM and cashflows update
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05 May 2022
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  • AMP Bank grew at 2x system growth with the total loan book increasing A$0.5 billion to A$22.6 billion in Q1 22 in a highly competitive market.
  • Australian Wealth Management (AWM) net cash outflows of A$1.3 billion in Q1 22, improved from net cash outflows of A$2.0 billion in Q1 21.
  • North inflows from external financial advisers (EFA) up 53 per cent to A$342 million on Q1 21.
  • AWM assets under management (AUM) decreased to A$136.5 billion during Q1 22 (Q4 21: A$142.3 billion), reflecting lower investment markets and net cash outflows.
  • AMP Capital AUM on a normalised basis[1] declined 0.6 per cent to A$52.5 billion from A$52.8 billion in Q4 21, primarily reflecting client redemptions from China Life AMP Asset Management (CLAMP) money market funds. 

AMP Chief Executive Alexis George said:

“We’re seeing positive signs of growth and momentum and have set a clear path to accelerate the transformation of AMP Limited with the announcement of the sale of Collimate Capital’s real estate and infrastructure equity businesses, enabling an increased focus on the growth of our retail banking and wealth businesses.

“Our investments in technology to simplify and improve the lending experience has supported AMP Bank to deliver strong growth in a very competitive market, while also supporting customers to own their own home and invest in property.

“We continue to transform and simplify wealth management delivering better outcomes for our customers and advisers. There’s continuing interest in the North platform from external financial advisers as we continue to expand its investment menu with new managed portfolios and ESG options for clients.         

“In AMP Capital our focus has been on delivering on our strategic objectives with the divestment of the GEFI business and infrastructure debt platform, alongside the transfer of the Multi-Asset Group capability to our wealth management business.

“With the transactions we announced last week, we have set AMP up for a strong and sustainable future, with a clear strategy to grow AMP Bank and our wealth management businesses in Australia and New Zealand.”

Business unit results

AMP Bank

  • AMP Bank’s total loan book grew by A$0.5 billion to A$22.6 billion in Q1 22. Residential loan growth was approximately 2x system growth[2] for the quarter, in a highly competitive market.
  • Total deposits increased by A$1.7 billion to A$19.5 billion during Q1 22, reflecting a deposit to loan ratio of 86 per cent. Majority of flows were sourced from customer deposits, in line with the Bank’s objective to further strengthen its liquidity. 

Australian Wealth Management

  • Australian Wealth Management AUM decreased A$5.8 billion to A$136.5 billion during Q1 22, reflecting lower investment markets and net cash outflows.
  • Net cash outflows of A$1.3 billion at Q1 22 improved from A$2.0 billion net cash outflows in Q1 21.
  • North EFA inflows of A$342 million, up 53 per cent on Q1 21.
  • While underlying cashflow trends continue to improve, the conclusion of AMP’s mandate as Woolworths’ corporate super provider is expected in 1H 23, and will generate an additional one-off impact of approximately A$4 billion in cash outflows. The exit of the mandate is not expected to have a material impact on profitability.

New Zealand Wealth Management

  • New Zealand Wealth Management AUM decreased to A$11.3 billion in Q1 22 (Q4 21: A$12.2 billion), driven by lower investment markets and net cash outflows.
  • Net cash outflows of A$62 million improved from net cash outflows of A$102 million in Q1 21, reflecting the non-occurrence of one-off events in Q1 21.
  • KiwiSaver net cash inflows of A$10 million were up from A$6 million in Q1 21.

AMP Capital

  • AMP Capital’s AUM of A$52.5 billion[3] (Q4 21: A$177.8 billion) reflects the Q1 22 strategic initiatives, being completion of the sale of the Global Equities and Fixed Income (GEFI) business to Macquarie Asset Management, sale of the infrastructure debt platform to Ares[4] and transfer of the Multi-Asset Group (MAG) to Australian Wealth Management, which all concluded in Q1 22. In total A$125.0 billion in AMP Capital AUM transferred during Q1 22 with these transactions. 
  • On a normalised basis, AUM declined 0.6 per cent to A$52.5 billion from A$52.8 billion in Q4 21.
  • Net cash outflows of A$1.0 billion, reflect asset divestments in closed-end infrastructure equity funds, delivering strong performance for fund investors; alongside quarter-end liquidity management by China Life AMP Asset Management (CLAMP) investors in a period of market uncertainty.

Authorised for release by the Market Disclosure Committee.

[1] AMP Capital AUM normalised to reflect the proforma impact of Q1 22 strategic initiatives 

[2] APRA market share data as at 28 February 2022.

[3] AMP Capital AUM includes AMP Capital’s 14.97% share of CLAMP AUM.

[4] Ares Holdings LP, a subsidiary of Ares Management Corporation (“Ares”) (NYSE: ARES).

Contact details
Mark Roberts
+61 (0) 466 328 581
Mark_Roberts@amp.com.au
Contact details
Katherine Perry
+61 (0) 411 247 629
Katherine_Perry@amp.com.au