AMP Bank happy with progress

By KEVIN TAYLOR

AMP Bank says it is heading for consistently profitable times in New Zealand.

The bank's New Zealand arm made a $1.54 million loss in the six months to the end of June, according to information it must file with the Reserve Bank.

That compares with an $8.04 million loss in the six months to June 30 last year.

For the 12 months to June the bank made a $16.51 million loss compared with $19.92 million in the corresponding period in 2000-01.

The bank's Australia and New Zealand head of retail banking, Michael Guggenheimer, said the comparison between the first and second halves of the year to June showed the progress AMP Bank was making.

It was now making a profit most months, he said.

The smaller loss in the six months to June compared with the same time last year followed a 20 per cent rise in revenue and expenses falling 15 per cent.

"Our asset growth has been around 4 per cent and our liability position is stable," Guggenheimer said. "In looking at those numbers we are obviously very pleased with where we are tracking."

AMP Bank set up in New Zealand in 1998 but has not turned in a profit since.

But in April Guggenheimer said he was confident that it would see its way clear of a string of losses after a year of restructuring.

The reorganisation cost about $17 million as some operations were shifted back to Sydney and about 150 New Zealand-based jobs were removed.

AMP Bank is among the smaller of the registered banks in New Zealand, with $2.9 billion of total assets.

Guggenheimer would not reveal how many customers it had in New Zealand.

But he said it was using every opportunity to work with the rest of the AMP group in New Zealand and promote the bank to the financial services giant's 350,000 customers.

AMP Bank is also advertising to boost the profile of its deposit products, including its Easysaver call account which offers 5.5 per cent interest.

Guggenheimer said that account was growing in popularity.