AMP is reportedly considering restructuring its banking operations through a funding model similar to those recently adopted by Bank of Queensland and HSBC, potentially positioning the financial group for a takeover. The company has declined to comment on the speculation, which comes amid growing market attention on AMP’s bank.

Investment bank UBS is advising AMP, and sources familiar with the situation suggest the financial group’s move to create a more arm’s-length arrangement for its banking segment could make AMP an attractive acquisition target. Insignia Financial, a wealth manager owned by CC Capital, has emerged in market speculation as a possible buyer. Insignia’s interest primarily centers on AMP’s North platform, one of Australia’s leading wealth management services.

According to market insiders, AMP has been presented to various wealth management firms by investment bankers exploring potential buyers for part or all of the business. However, the bank itself is seen as a complicating factor, often described as the “fly in the ointment” by those involved in the discussions.

Blair Vernon, who became AMP’s chief executive earlier this year after serving as chief financial officer, stated in May that mergers and acquisitions were not currently on the agenda. Some analysts interpret this as a sign that AMP might be positioning the group for a strategic breakup.

AMP’s banking division manages $17.8 billion in total deposits and holds a $23.6 billion residential mortgage portfolio. For the six months ended June 2026, the bank reported a net profit of $20 million, representing a 33.3 percent decline compared to the same period the previous year.

The potential restructuring involves selling AMP’s loan portfolio to a private equity firm, which would then maintain these assets within a wholesale warehouse facility. This approach allows AMP’s bank to originate loans under its own brand and technology, but with funding sourced from the private equity firm. Such a transaction would free capital for AMP, reduce the bank’s debt funding, and transfer credit risk to the private equity investor. AMP would then generate revenue primarily through servicing and loan origination fees, creating a capital-light income stream.

This model reflects recent moves by other Australian lenders. For example, Bank of Queensland transferred a $3.7 billion equipment finance portfolio to Challenger in August, while HSBC sold its $36 billion Australian loan book to Blackstone in July under a similar structure.

Previously, AMP had maintained that it would only sell its bank if a buyer offered at least its book value. However, changing market conditions, including higher interest rates and a weakening housing market, are prompting speculation that AMP could now be willing to consider a sale at a discount.

Despite challenges within its banking unit, AMP’s share price has risen approximately 60 percent over the past year, driven largely by the performance of its partnership with China Life Insurance. Nonetheless, the bank continues to strain AMP’s overall capital base. The company could argue that divesting the banking business, even at less than book value, may unlock capital to invest in more profitable ventures.