(Australia) – Troubled Australian financial services group, AMP, has moved to wind down its offshore banking operation with the A$1.2 billion sale of a parcel of UK loans and deposits to the Newcastle Building Society.Although AMP says it plans to maintain its bank unit in Australia, it signalled last year its plans to exit the business in other parts of the world.
The sale, which AMP said was at a small profit, involves a A$950 million mortgage portfolio, a A$160 million deposit book and other loans of A$30 million.
AMP is also reportedly close to selling its Stanbroke Pastoral Co, one of Australia’s biggest rural businesses, for between A$500-550 million in a move to free up capital after its recent losses.
In other AMP news, the company has announced legal aid for Hong Kong clients who have lost money in the A$80 million collapse of two hedge funds operated by its UK financial planning subsidiary Towry Law.