Sharechat Logo

AMP sells loan book

Tuesday 15th April 2003

Text too small?
AMP has reached an agreement to sell its Australian and New Zealand loan book to HSBC for $3.1 billion.

The company signalled last year that it wanted to exit the "manufacturing" side of the banking business as it was too capital intensive.

Despite reaching an agreement to sell its loan book, which includes New Zealand residential mortgages, and Australian and New Zealand property finance loan assets, AMP plans to continue selling banking products such as mortgages.

Under the new arrangement it will sell "badged" products. For instance an customer will be able to arrange a mortgage with AMP, but it will actually be an HSBC mortgage.

The company has taken the same approach with its general insurance business, when it sold the manufacturing side of the operation to Royal & SunAlliance last year.

Under the deal announced yesterday HSBC will acquire AMP Banking's A$1.6 billion residential mortgage portfolio in New Zealand and, subject to customer consent, take on AMP Banking's A$355 million New Zealand retail deposit portfolio.

AMP Banking said it will enter into management and funding arrangements with HSBC over a further A$135 million of mortgages.

GE Commercial Finance will acquire A$1.25 billion in property finance loan assets from AMP Bank and AMP Finance in Australia and New Zealand.

AMP chief executive officer Andrew Mohl said the transfers are expected to be completed by the end of the first half of June, subject to regulatory approval and contractual obligations. The final purchase prices would depend on a number of factors, including account balances at the date of completion.

Discussions continued in relation to the proposed divestment of about A$490 million in rural property and other property finance loans retained by AMP Bank and AMP Finance.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AMP 1H earnings creep ahead of forecast, appoints Craig Meller as CEO from next year
NZ sharemarket to unleash demand for an extra $2 billion from investors, says AMP
AMP Capital NZ cut costs in 2011, parent may ask for more
AMP Financial Services suffers 1Q cash outflow, NZ shines
AMP NZ Office 1H profit falls 28.2%
AMP Financial Services NZ's earnings fall
Daily ShareChat: AMP
AMP granted clearance to buy AXA
Stocks to watch: Good news start for AMP
AMP still interested in AXA despite rejection