Impact of the sale of HSBC’s housing loan book on RBNZ statistics
31 January 2024
On 1st December 2023, HSBC completed the sale of their housing loan book to Pepper Money. This has shifted housing loans from the banking sector to the non-bank lending institutions (NBLI) sector, with series breaks being applied for both sectors for the Dec-23 period in our statistics. The banking sector has seen a decline of approx. $1.055b, while the NBLI sector has risen approx. $1.2b as a result of this sale. The difference between the two amounts relates to undrawn commitments, which are included in the reported values for NBLIs but not for banks. This is because bank and NBLI data, which is published in our C5 web table, are collected from different returns. NBLIs are required to complete our standard statistical return, which reports both drawn and undrawn amounts together, while data for banks is collected from the bank balance sheet return, which separates drawn and undrawn lending. Bank undrawn commitments are excluded from our housing statistics.
In addition to the $1.2b adjustment for NBLI’s, a further $100m break was also applied for Dec-23 due to other reporting adjustments, resulting in an overall break of $1.3b. The break adjustments have not been applied to the stock levels visible in our published statistics, and therefore the figures presented show the actual lending stocks as at the end of each month.
Annual growth rates are break adjusted, with the $245m difference between the bank and NBLI breaks being applied as a break at the total housing level. This has resulted in a slight break adjustment to the housing growth rate for Dec-23.
The impact of the HSBC housing loan book sale has more of an impact at the bank & NBLI level. The following chart compares bank housing lending annual growth rates calculated from the stock figures in our web tables versus when they have been adjusted for the break in the series.
Break adjusted bank housing annual growth rate:
The same has been shown below for NBLI housing lending annual growth:
Series breaks in housing lending are published separately against our C5, S31, S32 & S33 tables for banks, and against our T1-T31 tables for NBLIs.
The bank balance sheet release for December also includes a key points summary. Some figures in this summary have been break adjusted to account for the housing loan sale in our statistics.
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Publication of long run total loans and assets
31 August 2022
Today’s release of the S10 Banks: Balance sheet table includes an additional data file containing long run total loans and total assets dating back to December 2008 and June 1998 respectively.
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