tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, April 16th, 6:28PM

Mortgages

rss
Latest Headlines

Pepper says HSBC acquisition integrated without need of more staff

Pepper Money says it has been able to complete the acquisition of the HSBC New Zealand mortgage portfolio and to integrate it without needing any additional full-time employees.  

Saturday, March 2nd 2024, 6:00AM

Chief executive Mario Rehayem says this reflects “our ability to continue to deliver scaled growth.”

The HSBC book “is a highly performing portfolio with virtually no loss history.”

The purchase was announced in September last year after HSBC announced it would withdraw from both the wealth management and retail banking markets in NZ because these were small scale amid an increasing amount of regulation.

The HSBC book had about NZ$1.4 billion in mortgages.

It was one reason Pepper's loans and advances rose to A$18.38 billion at Dec 31 from A$18.33 billion a year earlier.

The company reported a 23% decline in net profit to A$108.7 million for calendar 2023, which reflected a 43% drop in mortgage origination and a squeeze on margins because of higher funding cos5ts and customer contrition.

Although Pepper has operated in NZ since 2019, it doesn't disclose its NZ results separately.

The results showed the company reduced full-time equivalent employees to 863 from 1,081 at June 30 and 1,114 at Dec 31, 2022.

Mortgage origination fell to A$3.9 billion for the year, but originations in the second half were up 28% on the first half.

Mortgage assets under management reached A$12.6 billion, down from A$13.5 billion in 2022, reflecting the difficult macro-economic conditions and “intense competitive environment,” the company said.

The environment had a marked impact on Pepper's loan mix with non-conforming lending rising to 63% of originations from 48% the previous year and prime loans falling to 37% from 52% in 2022.

The company grew its asset finance originations 21% to a record A$5.7 billion in the latest year.

Rehayem says the results show “our disciplined approach to knowing when to focus on growth and when to manage for value.”

The environment remains “uncertain” but Pepper will continue to respond and adapt, including “continuing to find ways to help our customers navigate difficult economic conditions.”

The company raised A$5.4 billion from seven public term securitisations during the year and remained well-funded to support future growth with unrestricted cash of A$121.1 million at year end.

Tags: Pepper Money

« Westpac loaded up on home loans in the Dec Qtr after a quiet periodMortgage lending grows but still soft »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.75 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.75 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 8 April 2024 9:21am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com