Challenger snaps up Citibank margin lending
Challenger International has purchased Citibank's margin lending business for an undisclosed sum.
Challenger International has purchased Citibank's margin lending business for an undisclosed sum.
Challenger managing director Bill Ireland says the terms of the deal are confidential, but that the business "was not generating a lot of profit for Citibank".
"We bought it because we were trying to get into that business ... it gives us critical mass," he says.
Challenger says the sale will be "seamless for Share Finance clients and is a positive develop-ment for the business strategies of both companies".
The margin lending business has about $80 million of loans for about $200 million of invest-ments in shares and managed funds.
Ireland says the business will complement Challenger's existing range of financial products such as warrants, property trusts and leveraging.
He says Challenger also pursued the deal as it "had identified margin lending as a key product in providing additional service to stockbrokers and financial advisers".
AUTHOR
Recommended for you
Wealth Data has revealed the top five licensees for financial adviser growth over the September quarter, with more than 150 advisers joining in Q3 overall.
Former Sydney financial adviser, David Valvo, has pled guilty in court to a charge of dishonest conduct.
Building a network of mentors and coaches with varied skill sets could help women achieve their career goals, according to an FBAA executive.
AMP has reported its Q3 results and provided a progress update on the divestment of its advice division to Entireti.
