UDC to buy $238m portfolio

UDC Finance is in the process of purchasing the Bank of Queensland’s $238 million New Zealand portfolio.

In a statement to Australia’s stock exchange on February 2, the bank says the sell-off is part of its plan to streamline its operating model, and reduce compliance by exiting a lending portfolio in an overseas jurisdiction.

Under the sale agreement, the Bank of Queensland will sell its assets at 91 per cent of the book value.

Don Atkinson, pictured, chief executive of UDC, says the book aligns with its core business and features high-quality customers. The transaction is expected to be completed in the second half of 2024.

Chris Screen, the Bank of Queensland’s business banking group executive, says it’s pleased to have secured a purchaser in UDC, which is New Zealand’s largest non-bank lender.