HSBC has agreed to sell its $36 billion home and personal loan portfolio in Australia to private equity firm Blackstone, marking the bank's exit from the country's retail banking market after four decades.
The sale is scheduled to complete during the first half of 2027, ending HSBC's consumer footprint in Australia since receiving a local banking license in 1986.
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Under the agreement, non-bank lender Pepper Money Ltd will manage the home loan portfolio, ensuring ongoing support for existing borrowers.
HSBC will wind down the remainder of its Australian retail operations over the next 18 months, part of a broader strategic realignment led by CEO George Elhedry, who took charge at the end of 2024.
An HSBC spokesperson assured customers that banking services will continue as normal during the transition, with further information to be provided about changes to their products.
"For now, customers can continue to bank with us as normal and will receive information from HSBC outlining the subsequent changes to the products held, noting there is no action required at this point," the spokesperson said.
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The decision follows a strategic review of HSBC Australia's retail business and aligns with the group's ongoing simplification efforts, according to the spokesperson.
Blackstone's Head of International Business Development, Mike Culhane, welcomed the acquisition, expressing confidence in the "high-quality Australian home loan portfolio" and the goal of a "seamless transition" for customers.
This transaction follows HSBC's sale of its Singapore insurance unit to Allianz for $2.1 billion in July.
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It also marks Blackstone's continued expansion in Australia, having acquired data center operator AirTrunk for $23.5 billion in 2024.
