AMP Bank scoops up Nano home loan book

AMP Bank has added $400m in loans to its mortgage book after acquiring the neobank’s portfolio.

AMP Bank has acquired Nano’s home loan book. Picture: NCA NewsWire / Steven Saphore

AMP Bank has added $400m in loans to its mortgage book after acquiring neobank Nano’s home loan portfolio.

It comes less than a year after AMP partnered with Nano to deliver a digital mortgage offering for retail customers.

In a statement issued on Tuesday, ASX-listed AMP said the acquisition would support the growth of its bank while maintaining the high-credit quality of the mortgage book. Nano’s mortgage book consists primarily of owner occupied, principal and interest loans.

The move to bulk up the loan book is part of AMP’s efforts to streamline its operations, with a focus on growing the bank as it hives off other parts of the business, namely its Collimate Capital businesses.

The deal will see Nano focus on providing technology to financial services companies as it moves away from home loans. Nano customers will transition to AMP Bank in March.

AMP Bank group executive Sean O’Malley said the lender would look for more bolt-ons to build up its capacity.

“The continued strong growth of AMP Bank has been largely organic, driven by investments in our service, digital capabilities and competitive offers to attract new customers, particularly through the mortgage broker channel,” he said.

“However, in line with our objective to grow the bank and increase our direct to customer channel, we will continue to consider acquisition opportunities where they make strategic sense and maintain the high quality of our loan book.

“Given our existing partnership with Nano to deliver one of the first true end-to-end digital mortgages, and the detailed understanding of their business, the opportunity to acquire their direct to customer loan book aligned well with our strategy.”

The latest acquisition comes as AMP has been battling to wrap up the sale of its Collimate Capital domestic real estate business to infrastructure equity operators Dexus Funds Management.

The protracted sale of the business, announced in April, was due to complete before the end of 2022.

But AMP earlier this month warned it was still awaiting regulatory approval in China – necessary due to AMP’s stake in China Life AMP Asset Management.

If the $250m deal is not completed by February 28, AMP faces a $25m haircut on the sale price and the $26m remaining potential funds under management earnout will be forfeited.

Separately, Collimate Capital’s international infrastructure equity business is being sold to DigitalBridge in a $699m deal.

AMP shares were up 0.38 per cent at $1.34 in morning trade.