LONDON (Alliance News) - HSBC Holdings PLC Tuesday, said that its indirect wholly-owned subsidiary HSBC Bank Australia Ltd, has signed an agreement to sell its Woolworths white label credit card portfolio in Australia to Macquarie Bank Ltd.
The company said that as a result of the disposal, HSBC's credit card agreement with Woolworths will be terminated.
HSBC said that the value of the gross assets being sold was approximately AUD362 million, as at March 31, 2014.
The group said that the transaction is expected to complete in the second quarter, and HSBC will provide services to Macquarie Bank Ltd related to the operation of the card portfolio in Australia, which are expected to conclude in the first half of 2015.
"Australia continues to be a priority growth market for HSBC where the group remains focused on building a strong and sustainable business. HSBC credit cards remain an integral part of the Retail Banking and Wealth Management strategy in Australia," the group said in a statement.
HSBC Holdings shares closed 0.3% lower Tuesday at 604.10 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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HSBC Holdings (HSBA)