The decision of Macquarie Group to sell its investment lending business should not been seen as the start of a series of divestments, a spokesperson for the group said.
It is the result of a continued process in which the group reviews its businesses. "This is a standalone decision," the spokesperson said.
Macquarie announced the intention to sell its investment lending division last Friday, and said it was talking to several potential buyers.
The division provides margin loans, protected loans, and specialist investment loans in Australia. It has a core margin lending book of A$3 billion, the spokesperson said.
In its 2008 annual report, the group said the total investment lending portfolio saw a growth of 25 per cent from A$4.8 billion at March 31, 2007, to A$6.0billion at March 31, 2008.
Although the group did not want to provide any further financial details, it did indicate the sale will not be financially material, as it represents less than one per cent of the 2008 profits.
The Reserve Bank of Australia puts a figure of A$32 billion on the Australian margin lending industry.
The leading market players are Commonwealth Bank of Australia, Westpac Banking and St George Bank, but they did not want to say whether they were in discussions with Macquarie about the purchase of its business.
