AMP is actively considering selling its $2 billion banking arm to free up capital following the likely collapse of its life insurance divestment deal, sources told Dataroom.
The embattled wealth group (AMP) is understood to be working through bank sale options with bankers at Credit Suisse, while UBS has not fallen away from its deal advisory mandate.
But it is unclear whether interested acquirers have been able to meet AMP’s price expectations for the bank and whether a decision to proceed with a divestment has been made.
An AMP spokeswoman declined to comment.
For AMP’s 2018 year, the bank posted a 5.7 per cent lift in operating earnings to $148 million. The net interest margin printed flat at 1.7 per cent.
AMP scrapped its interim dividend and said its $3.3 billion life insurance sale to Resolution was “highly unlikely” to proceed. That has several analysts in the market pencilling in a $1bn capital raising as the group looks to fund its turnaround plan.
The sale of the bank would, however, be an about turn for AMP.
The bank was among the divisions, including wealth management in Australia and New Zealand and infrastructure and real assets divisions AMP Capital, that were identified as growth areas of AMP.
AMP shareholder Merlon Capital Partners has valued AMP’s bank at between $2bn and $2.3bn.
Last year, Macquarie Group was among parties that ran a ruler over AMP bank and the company in its entirety. Sources suggested the big four banks could not be ruled out as acquirers, although some may confront competition concerns.
Others said banks out of Japan and China were likely sounded out over their potential interest.
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