AMP to re-enter the mortgage market

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AMP has decided to re-enter the home loan market and provide AMP-branded lending options through a partnership with Kiwibank.

Friday, February 16th 2007, 6:51AM

“We have been working hard to return to market with AMP home loans through our adviser force of 353 around the country,” AMP managing director Greg Camm says. “And we see significant customer benefits in Kiwibank’s extensive branch network.”

As part of this move HSBC is negotiating the sale of its AMP-originated residential mortgage book to Kiwibank.

Kiwibank and HSBC have entered into a non-binding agreement to negotiate the sale which is expected to be at a slight premium to book. The portfolio comprises about 5,900 customer accounts with a total book value of $720 million.

HSBC New Zealand will retain the majority of its $1.58 billion residential home loan portfolio that were largely originated by HSBC.

“Kiwibank is growing its market share in New Zealand and is well placed to provide the customers who came to HSBC through AMP with the quality of products and support to which they are accustomed. HSBC will work with Kiwibank in the future, using our presence worldwide to help it access global capital markets," HSBC chief executive Norman Wilson said.

“The AMP portfolio has helped us build our profile in New Zealand. We continue to be committed to our remaining mortgage business, which has increased over 40% since 2002 and the majority of which was acquired through direct relationships with customers. We intend to continue to grow our own mortgage business.”

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