Macquarie to sell investment lending business

Macquarie Bank Limited today announced it intends to sell its Investment Lending business in Australia.

The potential sale of the business follows on from Macquarie’s decision in March 2008 to wind back its mortgage business and reflects the increased cost of funding associated with changed financial market conditions over the past year.

While the investment lending business is an Australian market leader and has been a profitable business, it contributes less than one percent of Macquarie Group profits.

The sale of the business will not be financially material to Macquarie Group and will enable the Group to further focus on continuing to grow Macquarie’s most profitable businesses.

Macquarie is discussing with potential buyers an ongoing strategic partnership which will allow Macquarie to continue to provide investment loan products to its clients.