15 Feb 2007 09:32
HSBC Holdings PLC15 February 2007 HSBC TO SELL AMP BANK-ORIGINATED MORTGAGES HSBC New Zealand is negotiating the sale of its AMP Bank-originated residentialmortgage book to Kiwibank Limited in order to focus on customers withinternational as well as local financial needs. Kiwibank and HSBC have entered into a non-binding agreement to negotiate thesale which is expected to be at a slight premium to book. The portfoliocomprises approximately 5,900 customer accounts with a total book value ofNZ$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 ourintention to focus our business on those customers whom we are best placed toserve. In large part, these customers have international interests and need theunique support HSBC can offer. "Kiwibank is growing its market share in New Zealand and is well placed toprovide the customers who came to HSBC through AMP with the quality of productsand support to which they are accustomed. HSBC will work with Kiwibank in thefuture, using our presence worldwide to help it access global capital markets. "The AMP portfolio has helped us build our profile in New Zealand. We continueto be committed to our remaining mortgage business, which has increased over 40per cent since 2002 and the majority of which was acquired through directrelationships with customers. We intend to continue to grow our own mortgagebusiness." The transaction is subject to regulatory approval and agreeing final terms andconditions. 1. The HSBC Group in New Zealand In New Zealand, the HSBC Group offers an extensive range of financial servicesthrough a network of seven branches and offices. These services include personaland commercial financial services, trade finance, treasury and financialmarkets, corporate banking, investment advisory and securities custody. Theprincipal HSBC Group member in New Zealand is The Hongkong and Shanghai BankingCorporation Limited. 2. The Hongkong and Shanghai Banking Corporation Limited The Hongkong and Shanghai Banking Corporation Limited is the founding and aprincipal member of the HSBC Group which, with around 9,500 offices in 81countries and territories and assets of US$1,738 billion at 30 June 2006, is oneof the world's largest banking and financial services organisations. This information is provided by RNS The company news service from the London Stock Exchange