HSBC to sell loan portfolios

Banking giant HSBC on Tuesday unveiled plans for its indirect wholly-owned subsidiary HSBC Finance Corp (HFC) to sell its Personal Unsecured Loan and Personal Homeowner Loan portfolios.

The portfolios will be sold to SpringCastle Acquisition, a Delaware-based company owned by Springleaf Finance and Newcastle Investment Corp. in the second quarter of 2013.

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The carrying value of the gross assets as at the end of December was in the region of $3.4bn. The total consideration being paid is $3.2bn

Patrick Burke, the Chief Executive Officer of HSBC Finance Corporation, said: "These agreements accelerate the run-off of the legacy consumer mortgage and lending business and are a continuation of HSBC's strategy to reposition its US operations and focus on the core businesses supporting our aim to be the world's leading international bank."

The share price rose 0.31% to 712.20p by 14:20.

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