AMP Ltd. posted a year-over-year rise in outflows in its Australian wealth management unit as the company continues to deal with the fallout from revelations of misconduct during the royal commission inquiry into the financial sector.
The company on Oct. 24 reported net cash outflows of A$1.94 billion in its Australian wealth management unit for the third quarter ended Sept. 30, up 30% from its net cash outflows of A$1.49 billion in the prior-year period.
AMP CEO Francesco De Ferrari said the company achieved stronger inflows during the quarter, but those were offset by higher outflows as the new Protecting Your Super legislation was implemented on July 1. The legislation aims to protect Australians' super savings from unnecessary erosion by fees and insurance costs.
The company said there had not been material outflows from the loss of corporate super mandates during the third quarter, but it expects corporate super outflows of approximately A$1.4 billion in the next 12 months.
In the three months ended Sept. 30, total assets under management in the company's Australian wealth management business rose to A$133.18 billion from A$132.70 billion as of June 30.
Banking unit AMP Bank Ltd. reported total loans of A$20.30 billion, up from A$20.20 billion in the second quarter, which AMP attributed to ongoing growth from the mortgage broker channel and subdued market conditions. The bank's deposits increased to A$14.5 billion from A$13.87 billion in the previous quarter.