Non-major ramps up broker accreditation

by AB09 Feb 2018
AMP Bank said its new broker and adviser accreditation went up 7% in the 12 months to December 2017 from a year ago.

AMP Bank group executive Sally Bruce said the bank’s expanding network of brokers and advisers is seeing increased opportunity as the company experiences strong demand from customers for non-big bank alternatives. 

Customer numbers are up 8%, according to the bank.

“Momentum for AMP Bank is clearly reflected in our 2017 results and increase in broker and adviser accreditation,” said Bruce.

At the same time, the bank said it has maintained a conservative credit policy with average arrears below industry average.

The bank saw its residential mortgage book grow 14% to $18.9bn in the 12 months to December 2017 over the previous year. 

AMP CEO Craig Meller said loan growth moderated in the second half of FY17 as the market adjusted to new regulatory requirements, with interest-only loans seeing the most impact.

The bank did not provide a breakdown of its residential mortgage book by types of loans. 

Across its business, the bank recorded a 17% increase in operating earnings to $140m in FY17, driven by the growth in residential lending.

Bruce said the company will drive ongoing improvements to efficiency and service to help support its network of brokers and advisers and to prepare the bank for its next stage of growth.

The bank announced late last year a number of changes that affect brokers whose clients wish to increase or restructure their loans internally. From 5 January this year, the bank bases brokers' commissions on the net difference of the new and outgoing loans rather than the new loan limit.

Increases and restructures are processed as new loans with the bank.

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