“If you look at our customer base, there is an element of customers and the community doing it really tough,” says AMP chief executive Alexis George.
Distressed customers are contacting AMP’s call centre seeking to draw down their superannuation to help fund their mortgage repayments, as economic uncertainty and high-interest rates continue to weigh on Australians.
AMP chief executive Alexis George says a proportion of the community continues to feel the bite of high interest rates.“If you look at our customer base, there is an element of customers and the community doing it really tough, and you can see that in the arrears showing up in our book,” George said.
The proportion of AMP Bank customers who are on time with their mortgage repayments has fallen 1 percentage point to 14 per cent in the past six months, while those who are ahead has increased 1 percentage point to 27 per cent.The group’s banking division reported net profit after tax of $35 million, a 40 per cent fall compared to the same period last year. Its net interest margin – a measure of profitability comparing its funding costs with what it charges for loans – fell from 1.
AMP on Wednesday announced it would sell its Advice licences, as well as its self-licences offer Jigsaw $10.2 million to Entireti. AMP will retain a 30 per cent holding in the new company, but warned it would incur a $30 million loss from the sale of its advice business over the next six months.George remained optimistic about the future of financial advice, but the pressure on AMP as a regulated and publicly listed entity made it difficult for the group to provide a competitive service.
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