Another tough year for AMP Bank, including a shrinking balance sheet, highlights the importance to AMP that its recent plunge into business banking will pay off for the bank.
Net profit for AMP Bank over the year to December 2024 was $72 million, down from $93 million in 2023.
Revenue fell 15 per cent to $332 million.
AMP Bank’s return on capital fell to 6.1 per cent in 2024 from 7.9 per cent in 2023.
The mortgage book fell five per cent to $23 billion while business finance also fell five per cent to $231 million.
Average interest earning assets fell four per cent to $28.5 billion.
Deposits fell four per cent to $20.5 billion.
A the beginning of last week AMP debuted its new business banking proposition, which for now is a liability strategy.
AMP Bank appear to have absorbed all the start-up costs on the new business bank within a shrinking cost line, which is around 10 per cent lower.
But the bank’s cost to income ratio finished 2024 at 54.7 per cent, up from 48.7 per cent in 2023.
AMP Bank’s capital resources represent one third of AMP’s shareholder equity while the bank’s NPAT represents 30 per cent of AMP’s earnings.