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HSBC to sell AMP Bank-originated mortgages
15 February 2007
HSBC New Zealand is negotiating the sale of its AMP Bank-originated residential mortgage book to Kiwibank Limited in order to focus on customers with international as well as local financial needs.
Kiwibank and HSBC have entered into a non-binding agreement to negotiate the sale which is expected to be at a slight premium to book. The portfolio comprises approximately 5,900 customer accounts with a total book value of NZ$720 million (approximately US$496.8 million) at 18 January 2007.
HSBC New Zealand will retain the majority of its residential home loan portfolio - a book of NZ$1.575 billion in loans that were largely originated by HSBC.
Norman Wilson, chief executive officer of HSBC in New Zealand, said: “It is our intention to focus our business on those customers whom we are best placed to serve. In large part, these customers have international interests and need the unique support HSBC can offer.
“Kiwibank is growing its market share in New Zealand and is well placed to provide the customers who came to HSBC through AMP with the quality of products and support to which they are accustomed. HSBC will work with Kiwibank in the future, using our presence worldwide to help it access global capital markets.
“The AMP portfolio has helped us build our profile in New Zealand. We continue to be committed to our remaining mortgage business, which has increased over 40 per cent since 2002 and the majority of which was acquired through direct relationships with customers. We intend to continue to grow our own mortgage business.”
The transaction is subject to regulatory approval and agreeing final terms and conditions.
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