– AMP Bank total loan book grew by $0.5 billion to $25.0 billion in Q3 23
– AMP Bank total deposits increased by $0.8 billion to $22.1 billion during Q3 23
– Platforms net cashflows1 were $426 million (Q3 22: $748 million)
– North inflows from Independent Financial Advisers (IFAs) increased 17% on Q3 22 to $565 million
– Platforms Assets Under Management (AUM) were steady at $68.3 billion (Q2 23: $68.3 billion)
– Master Trust cashflows and AUM reflect the $4.3 billion mandate loss announced last year that transferred in August, with negative net cashflows of $4.9 billion (Q3 22: negative net cashflows of $722 million)
– New Zealand Wealth Management’s KiwiSaver recorded net cashflows of $59 million (Q3 22: $71 million)
AMP Chief Executive Alexis George said:
“We continue to actively manage the Bank portfolio in what remains a highly competitive environment, particularly as the Term Funding Facility (TFF) refinancing continues across the market. We expect to see subdued growth for the remainder of the year as we continue to manage Net Interest Margin (NIM), with full year NIM now expected to be below previous guidance of 1.30-1.35%.
“In Platforms, we continue to focus on driving flows from IFAs, with a 17% increase on the prior corresponding period. AUM remained steady, and net cashflows were lower as we continued to see a reduction in discretionary investment, as clients respond to the current economic environment.
“Our retirement solution, My North Lifetime2 , was last week globally recognised, winning the award for Pension Fund Design and Reform at the World Pension Summit in the Netherlands. This supports our intention to be a leader in this space, ensuring more Australians can enjoy a better life in retirement.
“As we confirmed at half year results, the transfer of a Master Trust mandate loss in August was reflected in negative net cashflows and a decline in AUM.
“In New Zealand, the KiwiSaver market remains resilient, with net cashflows of $59 million during the quarter. The divestment of a legacy product resulted in a negative movement in cashflows and a decline in AUM."
Business unit results
AMP Bank’s total loan book grew by $0.5 billion to $25.0 billion in Q3 23. Residential loan growth to the end of August 2023, was 1.64x system (based on APRA market share data as at 31 August 2023), although this is expected to be subdued for the remainder of the year, as AMP Bank continues to actively manage its portfolio in a highly competitive market.
Total deposits increased by $0.8 billion to $22.1 billion during Q3 23, with a deposit to loan ratio broadly steady at 88%. The majority of inflows were from customer deposits, with moderate uplift in term deposits driven by customer rates.
In Platforms, a decline in net cashflows (excluding pension payments) to $426 million (Q3 22: $748 million), was predominantly driven by the reduction in non-superannuation investment in response to the current economic conditions.
Pension payments were $499 million ($385 million Q3 22), reflecting increases to minimum pension drawdown rates from July 2023.
Platforms AUM was steady at $68.3 billion (Q2 23: $68.3 billion), with net cashflows of $426 million offsetting pension payments of $499 million. Investment market movements had a minor positive impact on AUM for the period.
North inflows from IFAs were up 17% on Q3 22 to $565 million, reflecting the strategic focus on this market.
In Master Trust, net cashflows reflected the $4.3 billion mandate loss announced last year that transferred in August 2023, resulting in negative net cashflows of $4.9 billion (Q3 22: negative net cashflows of $722 million). This was also reflected in lower AUM of $50.3 billion (Q2 23: $55.4 billion).
Pension payments of $106 million in Q3 23 compared to $97 million in Q3 22.
New Zealand Wealth Management
Net cashflows and AUM in New Zealand in the quarter were impacted by the strategic decision to divest legacy products to simplify and derisk the business. Negative net cashflows of $36 million in Q3 23 (Q3 22: net cashflows of $23 million), and AUM of $10.4 billion (Q2 23: $10.8 billion) largely reflect the handover of funds from these divested legacy products.
KiwiSaver net cashflows were $59 million in Q3 23 (Q3 22: $71 million).
All figures are in Australian dollars (A$) unless otherwise noted. Authorised for release by the Market Disclosure Committee.
1 In Platforms and Master Trust, net cashflows excludes regular pension payments to members. Prior periods have been restated to reflect this.