Group-wide losses cause shares to fall on ASX
AMP Bank’s investor loan growth outpaced its owner-occupier segment by over 250% in the financial year ending 31 December 2025.
This was attributed to a strong focus on later-life and retirement-stage home loan products, including its 10-year interest only mortgage.
Post-reporting period, AMP Bank also announced its intention to reenter the SMSF lending market following an eight-year hiatus.
As of 31 December, investor loans comprised 39% of AMP Bank’s balance sheet, up from 38% in 2024 and 36% in 2023.
Year-on-year home loan growth of 3.5% to $24.1 billion was noticeably below wider system growth of 5.1%, although net interest margins saw a year-on-year improvement from 1.26% to 1.28%.
The launch of the AMP Bank GO mobile banking app is proving costly, with it running up a net profit loss of $10 million in the year. However, this reflects substantial marketing and launch costs as it seeks to scale.
AMP Bank GO’s losses contributed to a 9.8% net profit decrease to $55 million across the entire AMP Bank operations. Excluding the impact of AMP Bank GO, AMP Bank’s net profit increased 6.6% to $64 million.
Product launch delays impacted AMP Bank Go’s expected growth throughout the year. Total end-of-year balances of $310 million were less than half of the $624 million target.
Group wide, statutory NPAT fell 11.3%, causing shares to fall more than 20% on the Australian Stock Exchange (ASX).
However, outgoing AMP chief executive Alexis George (pictured) drew attention to AMP’s improving public reputation following years of class action lawsuits. The group resolved two legacy class actions in the year.
“2025 was an important year for AMP with resolution of legacy items and stabilisation of the portfolio,” said George. “This enabled renewed focus on winning in the segments we play, growing the wealth businesses, and building on the vision to be the place that customers come to plan for a dignified retirement.”
