HSBC has announced it is selling its $36 billion Australian home and personal loan portfolio to private equity giant Blackstone.
HSBC has announced it is selling its $36 billion Australian home and personal loan portfolio to private equity giant Blackstone, as it winds down its Australian banking arm over the next 18 months.
In a statement, HSBC announced Pepper Money Ltd would act as the servicer of the home loan portfolio following the completion of the sale to provide “ongoing support to customers and brokers”.
The sale is expected to completed in the first half of 2027 and will mark the conclusion of the banking giant’s four decade presence in Australia.
HSBC has announced its Australian retail banking arm will be wound down, amid the sale of its $36bn home and personal loan portfolio to Blackstone. Picture: AFP
The remainder of HSBC Australia’s retail business will be wound down over the next 18 months, the company announced.
“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,” a spokesperson said.
The mortgage loan transaction was announced on Friday. Picture: Supplied
“The decision to sell the portfolio and wind down the remainder of the retail business follows a strategic review of HSBC Australia’s retail business and forms part of the ongoing simplification of the HSBC Group.
Blackstone’s Head of International Business Development Mike Culhane said the company was pleased to invest in a “high-quality Australian home loan portfolio” while supporting a “seamless transition”.
Blackstone said the investment is a “testament to the power of our franchise and our conviction in the growing opportunities in credit”. Picture: Supplied.
The banks review of it’s local operations came after George Elhedry took on the role of chief executive at the end of 2024.
Headquartered in London, the company indicated their intention to leave Australia more than a year ago.
HSBC failed to win a considerable market share despite having held a local banking license in 1986 after Paul Keating opened the market to foreign competitors.
The transaction marks the latest downsizing move by the company after it sold their Signapore insurance business to Allianz for US $2.1bn in July.
Blackstone have started to expand its presence in Australia after purchasing centre operator AirTrunk for $23.5bn in 2024.
More to come