AMP Bank has reported growth of $1.1bn in the value of home loans on its books as at the end of 2011.
AMP has reported that the its banking arm has performed very well as far as mortgage growth is concerned. The lenders has enjoyed home loan volume growth of 0.8% per month last year, compared to market growth of 0.5%.
The $1.1bn increase in home loans represented an overall 10% year-on-year increase in its mortgage book.
The banking division contributed $61m to AMP’s company-wide operating earnings, up from $42m in 2010. Overall, AMP’s entire business reported a net profit of $688m for 2011.
AMP said in its report that the growth in home loans was largely facilitated and funded by customer deposits, which increased by $2.4bn (or 50%) during 2011.
AMP BAnk has approximately 100,000 customers, and distributes directly and through third party mortgage brokers and financial planners. Its mortgages are 75% funded by on-balance sheet assets, and 25% by securitisation.