AMP combines business units, appoints new boss

AMP Limited has announced it is combining its Australian wealth management business with banking into a new entity named AMP Australia, and has shuffled its C-suite lineup.

AMP chief executive Francesco De Ferrari said the integration of the wealth management and banking teams will assist in providing more holistic wealth services.

The move follows Sally Bruce stepping down as AMP Bank's chief executive, effective November 1.

The new entity will be led by Alex Wade as the chief executive of AMP Australia.

Wade is currently the chief executive of AMP's Australian Wealth Management. He has previously worked for Credit Suisse's private banking business.

Current managing director, wealth products and platforms Rod Finch will move to AMP Bank's managing director, effective November 1. He joined AMP in 2013, from Lloyds Banking Group's retail bank.

Finch's old role will be filled by Lara Bourguignon, who is currently the chief executive of SuperConcepts.

Bourguignon will continue as SuperConcepts chief executive, while also taking on responsibility for AMP Wealth's products and platforms as the managing director, superannuation, retirement  and platforms.

Finch will report to Wade.

De Ferrari said: "The strategy we set out in August is focused on reinventing AMP to be a client-led, simpler and more growth-oriented business. Bringing together our bank and wealth management teams in Australia will drive a more integrated organisation better able to pursue the significant opportunity we see in providing more holistic wealth services for our clients.

"Closer integration of the businesses was part of our long-term plan, and with Sally's decision to step down we have been able to accelerate our internal re-organisation."

Outgoing AMP Bank chief executive Sally Bruce said: "I am extremely proud of my time with AMP and what we have delivered at AMP Bank since I joined in 2015. Now is the right time for me to step down and to join my family, who relocated back to Melbourne earlier this year.

"I'm confident I am leaving AMP Bank in the hands of a strong team who will continue to drive the success of the business under AMP's new strategy."

The two businesses

AMP Bank has reported better earnings growth but AMP Wealth remains the bigger contributor to the company's overall earnings.

AMP's Australian wealth management business reported operating earnings of $363 million for FY18, down 7% over the previous year, according to annual report published in February.

Net cash outflows for the segment were close to $4 billion, reflecting a range of factors including reputational damage from the Royal Commission, the company said in FY18 annual report.

AMP Bank reported operating earnings of $148 million for the period, swelling by 5.7% over the previous year, which the company attributed to growth in residential mortgages and reduction in deposit covers.

In August, AMP raised over $650 million to implement its new strategy which, among other things, included reinvesting its wealth management business in Australia.

"[The strategy includes plans to] grow contemporary solutions in Australian wealth management and further integrate AMP Bank solutions with wealth management [and] fix legacy issues in Australian Wealth management including reshaping aligned advice and simplifying super," AMP said in August 8 company filings.

Read more: AMPAMP BankAustralian Wealth ManagementAMP AustraliaAMP LimitedSally BruceAlex WadeCredit SuisseFrancesco De FerrariLloyds Banking GroupRod Finch
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