A non-major bank has reported its home loans are outstripping system growth.
Bank’s FY2014 results reveal residential mortgage book growth of $1117 million in FY14 to $14 billion.
The report says this is partly due to “AMP Bank’s focus on pricing enhancements and productivity from key channels”.
“Strong growth was delivered through both the broker and AMP aligned adviser channels,” the report said, with the AMP aligned adviser channel contributing a quarter of AMP bank’s mortgage new business, up from 19% in FY13.
The report said FY2014 saw above system mortgage growth “despite significant competition in home loans and conservative credit policy”.
The bank held a competitive lending position, its total loan book growing by $1169 million to $14.5 billion in FY14, up 8.8% on FY13.
Owner occupied loans made up 62% of the mortgage portfolio at 31 December 2014, while investment property loans were 38%.
AMP Bank delivered A$91 million in operating earnings, up 10 per cent compared with FY 13.
Chief Executive Craig Meller said, “In 2014 we made marked progress on our strategy to be an increasingly customer-driven organisation that is leaner and more efficient.
AMP Limited totalled a net profit of A$884 million for the full year to 31 December 2014, up 32 per cent on A$672 million reported for FY 13.
“The other element of AMP’s strategy, to invest selectively in Asia and take our expertise into new markets, is starting to deliver good cashflows with strong long-term growth potential.”