UK banking giant HSBC to offload homeowner loan portfolio in $3.2bn deal

UK financial services major HSBC Holdings Plc (LON:HSBA) announced that an indirect wholly-owned unit will sell its personal unsecured loan and personal homeowner loan portfolios to a subsidiary of US-based Springleaf Finance Inc and Newcastle Investment Corp (NYSE:NCT) for USD3.2bn (EUR2.5bn) in cash.

HSBC Finance Corp (HFC) will offload gross assets with a carrying value of USD3.4bn as at 31 December 2012 to SpringCastle Acquisition LLC. The amount includes the value of HFC’s loan servicing facility and related assets in London, Kentucky, which will be sold to Springleaf as part of a separate deal.

The sale of the portfolios is expected to close in the second quarter of the year, while the disposal of the building and assets is scheduled for the fourth quarter. The two deals are part of HSBC’s strategy to reposition its US activities and concentrate on its core operations, HFC’s CEO Patrick Burke stated.