NAB acquires Challenger mortgage business
|
|
The National Australia Bank has moved to acquire Challenger’s mortgage management business for $385 million.
At the same time, Challenger said the residual income streams from all term funded mortgages had been sold to Challenger Life Company Limited for $575 million and that the net result of both transactions was that it paid down debt facilities and significantly improved its cash position.
Challenger said it would now be focusing purely on the significant opportunities that existed within the investment management activities of its life and funds management businesses.
NAB confirmed the transaction to the Australian Securities Exchange today, saying the purchase included the PLAN, Choice and FAST mortgage aggregator business and Challenger’s multi-brand ‘white label’ capability.
It said in addition, a select portfolio of approximately $4 billion of residential mortgages would be acquired at a discount to face value for loan loss provisions.
NAB chief executive Cameron Clyne said the acquisition provided additional distribution and capability in Australian mortgages.
NAB Personal Banking group executive Lisa Grey said the acquisition of the Challenger business would increase the bank’s presence in the important broker distribution segment.
She said the existing management team would be retained and continue to run the business as a separate entity reporting to NAB Broker within NAB Personal Banking.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
