HSBC announced it is selling its A$36 billion (approximately US$25 billion) Australian home and personal loan portfolio to Blackstone as part of a strategic exit from Australian retail banking announced on July 31, 2026 [1, 2, 3, 4]. The transaction is expected to close in the first half of 2027, pending regulatory and competition approvals [1, 2, 4].

The sale marks a phased wind-down of HSBC’s retail operations in Australia, where it currently operates 19 branches that will close over about 18 months [2, 3]. The bank has about 2,000 employees in Australia [2]. HSBC’s consumer loan book is mainly composed of mortgages, a segment dominated in Australia by the "Big Four" banks that command roughly 80% of the A$2.5 trillion mortgage market [2, 4].

Blackstone plans to appoint Pepper Money to service the loans after the transaction’s completion, with the possibility that Pepper Money will hire some former HSBC staff [2, 4]. HSBC will maintain and invest in its corporate, institutional, private banking, and asset management businesses in Australia and New Zealand [1, 3, 4].

HSBC anticipates the sale will result in a loss of less than US$100 million by mid-2027 and incur approximately US$300 million in restructuring costs related to the retail exit [1, 3, 4]. The bank also expects to record about US$300 million in foreign currency translation losses, which will not affect its CET1 capital ratio [1, 4].

The sale price reflects the portfolio value as of late January 2026 plus a premium linked to interest rates and collections performance [3]. HSBC said the deal is "part of the ongoing simplification of the HSBC Group" following a strategic review of its Australian retail business [2, 3].

This sale aligns with CEO Georges Elhedery’s global simplification strategy launched in September 2024, which includes cutting management ranks, reducing costs, and divesting non-core operations [1, 4]. Earlier divestments included HSBC’s Singapore insurance unit to Allianz and retail and wealth operations in Indonesia to OCBC [1, 4].

HSBC and Blackstone officials will work to finalize regulatory approvals ahead of the targeted closing in the first half of 2027 [1, 2, 4].