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. HFC has also entered into an agreement to sell its loan servicing facility and related assets in London, Kentucky, to Springleaf. 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 $3.2bnPatrick 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.NR