HSBC to sell US$25b of Australian home loans to Blackstone at a loss of less than US$100m

HSBC Holdings has agreed to sell its US$25 billion Australian home loan portfolio to a unit of Blackstone. This transaction is expected to result in a pre-tax loss of less than US$100 million for HSBC by the first half of 2027. The sale price was determined by the portfolio's value of A$36 billion (US$25 billion) as of the end of January, adjusted for interest rate changes, collections, and costs. Following this sale, HSBC Australia's remaining retail business will be phased out over the next 18 months. The net proceeds from the sale will be utilized for HSBC's corporate purposes.

HSBC is exiting the Australian retail banking market, closing all its local branches over the next 18 months. The London-headquartered company will sell its Australian mortgage and personal loan portfolio to global asset manager Blackstone. This move marks the end of HSBC's decades-long retail presence in Australia, though it will continue to offer private and institutional banking services. The decision follows a strategic review and is part of a broader simplification of the HSBC group. The sale, which is subject to regulatory approval, is expected to be completed in the first half of 2027, with Pepper Money appointed to service the loans.