(Reuters) – Australian financial services firm AMP Ltd said on Wednesday net cash outflows for its flagship Australian wealth management business were 30% lower in the March quarter, while the banking unit’s credit quality remained strong.
AMP Bank’s loan book grew over the first quarter compared with the previous three months, while lending margins were largely in line with what they were a year earlier. The company also said momentum in loan applications was improving, despite higher interest rates in the country.
“While economic conditions have become more difficult for some borrowers, AMP Bank’s credit quality remains strong,” the company said.
AMP is also trying to regain public trust after its involvement in a series of scandals over the past few years, ranging from charging fees for no service to executive misconduct, which led to large-scale fund outflows.
The flagship Australian wealth management business saw net cash outflows of about A$606 million ($407.84 million) for the quarter ended March 31, compared with A$873 million of outflows a year ago.
Assets under management for the unit stood at A$126.2 billion at the end of the quarter, an around A$2 billion growth from the previous three months, which the company attributed to “positive investment markets”.
($1 = 1.4859 Australian dollars)
(Reporting by Harshita Swaminathan; Editing by Anil D’Silva and Krishna Chandra Eluri)
