The AMP Limited (ASX: AMP) share price will be on watch this morning following the release of the financial services company's third quarter update.
How did AMP perform in the third quarter?
During the three months AMP's Australian wealth management business saw its assets under management (AUM) increase to $133.2 billion. This was despite net cash outflows of $1.9 billion over the period driven by cash outflows of $9 billion, which was partially offset by cash inflows of $7.1 billion. The latter was $0.6 billion higher than the prior corresponding period.
The AMP Capital business saw its AUM increase to $202.2 billion. Once again, this was despite net cash outflows of $1.1 billion over the three months. Since the end of the quarter AMP Capital's fourth infrastructure debt strategy has raised a record US$6.2 billion.
Elsewhere, the AMP Bank business experienced a $0.6 billion increase in deposits to $14.5 billion. This was driven by strong growth in retail and platform deposits, which reflects AMP Bank's strategy of moving to a more deposit-led funded bank.
The only part of the business not growing during the quarter was its New Zealand wealth management business. New Zealand wealth management AUM was down slightly to A$11.8 billion for the period. This was mainly due to a weaker New Zealand dollar.
AMP's chief executive, Francesco De Ferrari, was pleased with the quarter.
He said: "Each of our businesses performed broadly as expected during the third quarter. AMP Capital continues to experience strong demand for its real assets investment capabilities, with especially strong infrastructure debt flows and commitments of US$6.2 billion received for its fourth infrastructure debt strategy."
"AMP Bank has again delivered exceptional value to clients, which is reflected in strong deposit growth and an increase in our loan book. Australian wealth management is taking significant steps to reinvent its business model, building a business around client needs. We have achieved stronger inflows during Q3, reflecting our improved fee competitiveness, but also higher outflows as the new Protecting Your Super legislation was implemented in Australia," he added.
Also on watch today will be the Cimic Group Ltd (ASX: CIM) share price following the release of its third quarter update. Cimic reported a net profit after tax of $573 million for the 9 months to September 30.
