(Australia) – Troubled Australian financial services group AMP has continued its retreat from banking operations, with the announcement that it will sell more than A$2.8 billion in residential mortgages and property finance loans in Australia and New Zealand.AMP will sell it’s A$1.6 billion NZ residential mortgage portfolio to HSBC, while GE Commercial Finance will buy A$1.25 billion in property finance loan assets located in both Australia and NZ.
HSBC will also accept AMP Banking’s A$355 million retail deposit portfolio in NZ, and sign a management and funding deal with AMP over another A$135 million in mortgages.
No sale price has been disclosed, but AMP said the proceeds were “broadly in line with book value.”
The transactions follow the sale of AMP’s Australian and New Zealand credit card portfolio to American Express, and last month’s agreement to transfer its UK banking portfolio to Newcastle Building Society.