MAYBANK yesterday said it was selling some RM1.4 billion worth of its consumer non-performing loan (NPL) portfolio to Standard Chartered Bank (Hong Kong) Ltd and ORIX Leasing Malaysia Bhd.
Impact of the sale should be reflected in Maybank's results for the year ending June 30 2008.
Maybank entered into a conditional sale and purchase agreement with both parties yesterday. The portfolio comprises 8,375 long-outstanding secured consumer NPLs, mainly secured by residential properties in Malaysia.
The agreement was reached by way of negotiations following a bid process that was early December last year.
Conditions of the agreement include obtaining approval of the sale from the Minister of Finance and the conduct of a validation process by the buyer after which the final purchase price will be determined.
Maybank president and chief executive officer Datuk Amirsham Aziz said sale of the portfolio was part of Maybank's continuous effort to complement its various recovery strategies in asset quality management.
He added that this is the second time the bank had undertaken such an exercise. It has now sold two NPL portfolios divided into three tranches in the past two years.
"The sale of this second tranche is very much in line with our approach to consistently strengthen our asset quality and generate greater value for stakeholders," Amirsham said.-www.btimes.com.my
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