AMP’s has reported in it’s half yearly profit announcement that it has seen a drop in demand for home loans as compared to prior reporting periods.
AMP Bank contributed operating earnings of $21m to the group’s overall bottom line in the six months to June 2010, up from the $18m reported during the corresponding period during the first half of 2009.
The group announced that while the home loan market has been down overall in Australia and this is well recognised by other players in the industry, AMP has done quite well with it’s deposit division.
AMP’s statement added that second tier banks continued to experience ongoing funding constraints.
Overall, AMP Limited reported an underlying profit of $383m during the period, in a result that saw the group increase its underlying profit by 4.4% on the six months to June 2009, despite “an ongonig volatile market”.
AMP chief executive officer Craig Dunn said while AMP is confident about a positive economic outlook for both Australia and the Asian region, it continues to be cautious about the global economic outlook, expecting ongoing market volatility and subdued investor confidence.