HSBC 'no plans' to use brokers

By Ben Abbott | 9/08/2010 5:57:00 AM | 0 comments

Despite indications last week HSBC would look to expand its mortgage lending book after a strong profit announcement, the bank has confirmed it will not reconsider using third party introducers.

Currently, HSBC does not distribute mortgages through brokers, and a spokesperson for the group said it has "no plans" to change this strategy.

"Our business model is relationship-based - we're focused on cultivating 'main bank' relationships in which our clients hold multiple products with us, and we think this is best done directly," the spokesperson told Australian Broker.

HSBC Australia reported a pre-tax profit of $152 million for the first half, up 28 per cent over the same time last year. Residential mortgages were valued at $7,293m, up 28% from the $5,694m in the first half 2009.

HSBC chief executive Paulo Maia said last week the group would look to increase its small share of the local mortgage market by growing its business in the "mass affluent" market, or those earning more than $88,000 a year.

Related stories:

HSBC Australia: No return to the broker market

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