HSBC Sells Mortgage Portfolio
12/19/2006

HSBC Bank Australia is selling its broker-originated mortgage portfolio, which is valued at $1.75 billion, to leading Australian residential mortgage provider, FirstMac.

HSBC Bank Australia will keep most of its non-broker originated mortgage portfolio, valued at $5.8 billion, and will stop accepting mortgage applications from brokers after February 16, 2007.

After critical review of its Australian operations earlier this year, the lender has come to acknowledge the portfolio it has disposed of in the deal as 'non-core business and assets.'

HSBC will now have the opportunity to focus on investing in areas where it has a 'comparative advantage,' which is the lenders 'global network and the scale and insight it provides, both in retail and corporate banking.'

Chief Executive of HSBC Bank Australia, Stuart David, said, "We need to invest in business areas where our natural strengths lie."

"While distributing through brokers has given our portfolio scale, it precludes two of our greatest strengths - our service proposition and the ability to cross-sell our products," he added.

FirstMac sells financial products though a national distribution network of mortgage providers, and has also been in Australia's home-loans market for over 25 years.

HSBC said FirstMac is in a fantastic position to support the broker relationships the bank has made though the years.

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