HSBC Holdings Regulatory News (HSBA)

15 Dec 2006 09:06

HSBC Holdings PLC15 December 2006 HSBC SELLS BROKER ORIGINATED RESIDENTIAL MORTGAGE BOOK IN AUSTRALIA TO FIRSTMAC HSBC Bank Australia has entered into an agreement to sell itsbroker originated residential mortgage book to FirstMac. Theportfolio consists of over 10,000 customer accounts with a totalbook value of A$2.26 billion (approximately US$1.75 billion) at 22November 2006. HSBC retains the majority of its Australian residential mortgageportfolio - a loan book of A$4.5 billion, representing HSBC'sdirect customer relationships. HSBC Bank Australia will not beaccepting residential mortgage applications from brokers beyond 16February 2007. Stuart Davis, chief executive officer of HSBC Bank Australia, said:"After a strategic review of our local operations earlier thisyear, we have now disposed of non-core businesses and assets, andare focused on investing in areas where we have a comparativeadvantage. That advantage is HSBC's global network and the scaleand insight it provides, both in retail and corporate banking. "To deliver the best value to our customers here, we need to investin business areas where our natural strengths lie. Whiledistributing through brokers has given our portfolio scale, itprecludes two of our greatest strengths - our service propositionand the ability to cross-sell our products. "FirstMac, a leading residential mortgage provider, is well placedto support the broker relationships that we have developed inrecent years. We are confident it will provide our brokered loancustomers with the quality of products and support they areaccustomed to." Notes to editors:1. HSBC Bank Australia LimitedIn Australia, the HSBC Group offers an extensive range of financial servicesthrough a network of 32 branches and offices. These services include personaland commercial financial services, financial planning, trade finance, treasuryand financial markets, payments and cash management and securities custody.Principal HSBC Group members operating in Australia include HSBC Bank AustraliaLimited (ABN 48 006 434 162), HSBC Precious Metals (Australia) Limited (ABN 98001 930 392), HSBC Bank plc (ABN 98 067 329 015) and The Hongkong and ShanghaiBanking Corporation (ABN 65 117 925 970). HSBC is marketed worldwide as 'theworld's local bank'. 2. HSBC Holdings plcHSBC Holdings plc serves over 125 million customers worldwide through some 9,500offices in 81 countries and territories in Europe, the Asia-Pacific region, theAmericas, the Middle East and Africa. With assets of US$1,738 billion at 30 June2006, HSBC is one of the world's largest banking and financial servicesorganisations. 3. FirstMacFirstMac Limited (ABN 59 094 145 963, AFSL 290600) is a 100 per centAustralian-owned company and one of Australia's largest non-institutionallenders of home mortgages, self-funding its business by issuing AAA-rated bondson global capital markets. FirstMac originally entered the home loan market in1988 as a mortgage manager and originator to various third party fundingprogrammes. Since 2002, with the advent of the FirstMac residentialsecuritisation programme, FirstMac has increasingly self-funded its own mortgageorigination business while growing its presence through the provision ofwholesale funding to the Australian and US markets via a distribution network ofother originators. FirstMac has an Above Average S&P servicer rating. This information is provided by RNS The company news service from the London Stock Exchange