AMP Limited provides Q3 22 AUM and cashflows update

• AMP Bank grew 1.4x above system[1] with total loan book increasing A$0.6 billion to A$23.3 billion in Q3 22. Loan book underpinned by continued strength in deposit-to-loan ratio of 89 per cent. 
• Platforms net cash inflows increased to A$363 million in Q3 22 from A$205 million in Q3 21. North inflows from independent financial advisers (IFA) up 45 per cent to A$483 million on Q3 21 reflects ongoing focus on strategic priority to increase IFA inflows.
• Australian Wealth Management (AWM) net cash outflows of A$0.8 billion in Q3 22, improved from net cash outflows of A$1.9 billion in Q3 21. 
• New Zealand Wealth Management delivered positive net cash inflows of A$23 million in Q3 22, improving from net cash outflows of A$39 million in Q3 21, driven in part by increased net cash inflows from KiwiSaver and lower net cash outflows from other products.
• AWM assets under management (AUM) decreased to A$121.4 billion during Q3 22 (Q2 22: A$125.1 billion), driven predominantly by lower investment markets, as well as net cash outflows.
• AMP Capital AUM of A$52.0 billion in Q3 22 (Q2 22: A$53.4 billion) reflects the exit of a A$2.9 billion real estate separately managed account. Management rights of the A$8.0 billion AMP Capital Wholesale Office Fund (AWOF) recently transferred from AMP Capital to a new manager and will be captured in Q4 22 cashflow and AUM reporting.

AMP Chief Executive Alexis George said:

“We have made strong progress in the third quarter, which is reflected in the cashflows we’ve announced today. While challenging investment markets continued to have an impact on assets under management, we have seen a significant improvement in our cashflows as more customers choose to join or stay with AMP.

“Our bank continues to grow above system with both the loan and deposit books increasing in a competitive market. As homeowners begin to feel the impact of interest rate rises, our focus remains on supporting customers with competitive home loan and deposit rates, and maintaining our high quality credit position.

“We’ve seen a reduction in cash outflows to other superannuation funds and we’re winning new customers on our North platform, which has continued to grow cashflows from independent financial advisers – a key strategic focus for AMP.

“In the fourth quarter, we have already launched our digital mortgage and unique-to-market retirement offer. These are important strategic deliverables that will support AMP’s longer-term growth and deliver on our purpose to help people create their tomorrow.”

Business unit results

AMP Bank

• AMP Bank’s total loan book grew by A$0.6 billion to A$23.3 billion in Q3 22. Residential loan growth of approximately 1.4x system, as at 31 August 2022, in a highly competitive market.
• Total deposits increased by A$0.7 billion to A$20.7 billion during Q3 22, with a deposit-to-loan ratio of 89 per cent, up from 88 per cent at 1H 22.
• Majority of deposit flows were sourced from Platforms and customer deposits, with growth in term deposits replacing at call, driven by higher relative customer rates. 
• Net Interest Margin remains on track with the guidance range of 135-140bps.

Australian Wealth Management

• Australian Wealth Management AUM decreased A$3.7 billion to A$121.4 billion during Q3 22, driven predominantly by a reduction in investment markets, as well as net cash outflows.
• Net cash outflows of A$0.8 billion in Q3 22 improved from A$1.9 billion net cash outflows in      Q3 21 with the improvement largely attributed to lower outflows from Master Trust. Net cash outflows in Q3 22 also included A$482 million in regular pension payments to clients in retirement.
• Despite challenging investment market conditions, AUM on the North platform of A$55.7 billion remained relatively stable in Q3 22, attributable to net cash inflows of A$0.8 billion.
• North IFA inflows of A$483 million, are up 45 per cent on Q3 21, and up 16 per cent on Q2 22.
• Master Trust net cash outflows in Q3 22 of A$819 million, improved A$773 million compared to Q3 21.

New Zealand Wealth Management

• New Zealand Wealth Management AUM decreased to A$9.8 billion in Q3 22 (Q2 22: A$10.2 billion), driven by declines in investment markets and foreign exchange losses due to a weakening New Zealand dollar against the Australian dollar. 
• Net cash inflows of A$23 million in Q3 22, improved from net cash outflows of A$39 million in Q3 21, driven by increased net cash inflows from KiwiSaver and lower net cash outflows from other products.
• KiwiSaver net cash inflows of A$71 million in Q3 22 were up from A$40 million in Q3 21.

_{[1] For the year to 31 August 2022.}