AMP denies review of banking arm

By RICHARD BRADDELL

WELLINGTON - AMP has reaffirmed its commitment to its banking business, after the Australian media yesterday interpreted comments by chief financial officer Marc de Cure that it was under review.

AMP Banking chalked up losses of $A48 million ($59.67 million) in Australia last year. The New Zealand operation has stagnated during the integration of trimmed-down direct financial services operator Ergo with other banking assets held by the registered bank.

The New Zealand operation has also seen a raft of management changes with information leaked to the Business Herald suggesting that staff turnover has approached 50 per cent in the last year.

AMP spokesman Justin Kirkwood said that Mr de Cure had spoken of the group's need to be "very conscious of capital management strategies."

But Mr Kirkwood said the Australian papers had missed the point stressed by Mr de Cure that AMP Banking was still seen as an integral part of the overall strategy.

"We certainly haven't launched a review of the banking operations and we are committed to them in Australia and New Zealand and they are an integral part of our corporate strategy."

The New Zealand direct banking operation, Ergo Personal Financial Services, was formed in 1995 as separate brand from AMP but only gained traction once the brand was closely identified with AMP.

Graham Meyer, its original managing director, once said that the business had found its feet only when the product range was simplified into offerings that could be easily sold over the phone.

AMP has since adopted the approach of its half-owned British offshoot, Virgin Direct, which endeavours to provide services for all personal financial needs.