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
The profession is up by almost 200 advisers for the new financial year, with August continuing the consistent weekly positive gains.
WT Financial has announced its second “Hubco” with a combined valuation of $7.8 million, while its first one has successfully incorporated and is now making its own acquisitions.
The Australian Wealth Advisors Group has entered into a joint venture with a Melbourne financial services firm to launch a wealth manager.
Remediation and litigation costs have led AMP to announce a reduced statutory net profit after tax of $98 million for the first half of 2025.
