AMP Bank achieves above-system growth and higher margin 20 February 2015 4:41PM John Kavanagh AMP Bank managed to grow its mortgage book above the system rate of growth in 2014, while improving its net interest margin.The bank contributed net profit of A$91 million to group earnings in the 12 months to December - an increase of 9.6 per cent over the previous corresponding period.Net interest income rose 12.9 per cent to $236 million. The net interest margin went up two basis points to 1.41 per cent.The bank made a 15.2 per cent return on capital.The residential mortgage book increased by 8.7 per cent from $13.3 billion in 2013 to $14.5 billion at the end of last year. System growth over that period was seven per cent.Owner-occupied loans made up 62 per cent of the mortgage portfolio and investment property loans 38 per cent.The loan impairment expense fell from 0.02 per cent of gross loans and advances to 0.01 per cent of GLA.Customer deposits increased by 5.7 per cent to $9.2 billion. AMP said in its financial report that deposit growth was driven by flows into its Notice Saver Account and its North superannuation platform.The bank's funding was stable, with customer deposits rising from 53 per cent in 2013 to 54 per cent last year; securitisation was unchanged at 24 per cent and wholesale funding fell from 18 per cent to 17 per cent.