NAB, Bendigo seen as potential buyers for HSBC Australia — but don't expect a premium
If HSBC decides to sell its Australian retail business it would offer a high-quality, clean book — just not one to attract a big premium.
As speculation mounts over who might be interested in buying HSBC's Australian retail business, investment bankers think it would be unlikely to achieve a price above book value.
While the Australian unit has around $32 billion in owner-occupied and investor mortgages in Australia offset by $18.5 billion of household deposits, according to Australian Prudential Regulation Authority data, bankers said it was a “pure” book that wouldn’t attract a franchise premium.
“Essentially it’s a — good — book of loans from higher net worth clients. But when you buy a book like that, it’s just that. You’re not buying a business and loyal customer base like ANZ with Suncorp,” one banker told Capital Brief.
HSBC has not commented on reports from Bloomberg about a possible sale but it is understood that if it did go ahead — and notably, Citi did sell its consumer business to National Australia Bank three years ago — it would not include the commercial and wholesale banking operations.
