Pepper Ireland, a subsidiary of Pepper Group Limited (ASX:PEP), has signed a contract with Lloyds Banking Group to provide third party asset servicing services on the group’s Irish residential loan portfolio worth A$8.8 billion* on undisclosed terms. The vast majority of the portfolio is performing.
This is the second asset servicing contract Pepper’s Irish business has won since Pepper Group listed on the Australian Securities Exchange on 31 July 2015.
Commenting on this contract, Co Group Chief Executive Officer, Mike Culhane said “This was a detailed and competitive tender process. Pepper’s 20 years’ experience in asset servicing, coupled with its unique and innovative approach, where we service these loans as if we owned them ourselves has been, and will continue to be, crucial to our success.”
Co Group Chief Executive Officer, Patrick Tuttle continued “Contract wins like these means Pepper can grow and diversify its business strategically. Pepper continues to capitalise on opportunities stemming from large, traditional players, such as Lloyds Banking Group, exiting from segments of the market that we are targeting.”
It is expected that Pepper Ireland will begin servicing these assets by the end of the 2nd quarter of calendar 2016, following a suitable transition process.
Pepper Group’s loan servicing platform had A$36.8 billion in total Assets Under Management (AUM) as at 30 June 2015. This contract increases current AUM by approximately A$8.8 billion when boarded.
*Approximately €5.6bn based on AUD:EUR exchange rate of 0.63
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