HSBC Australia has confirmed the sale of its Australian home and personal loans portfolio – valued at AUD$36 billion – to global alternative assets manager, Blackstone, marking the first stage of the bank’s winding down of its local retail operations over the next 18 months.
A statement from HSBC said the transaction comes after a “strategic review of HSBC Australia’s retail business and forms part of the ongoing simplification of the HSBC Group”, as it looks to focus on growing its “market share in the areas where it has clear competitive advantage”.
With the sale of the loan portfolio and the wrapping up of the bank’s retail business, HSBC said its focus will turn to investing in and growing its Corporate and Institutional Banking ‘franchise’ in both Australia and New Zealand, as well as its Asset Management and Private Banking arms.
“The remainder of HSBC Australia’s retail business not included in the sale will be wound down in a phase manner over the next 18 months,” the bank’s statement said.
“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 transaction is expected to complete in the first half of 2027, with non-bank lender Pepper Money to take over as ‘servicer’ of the portfolio once the sale is finalised.