Lead

HSBC Holdings has agreed to sell its US$25 billion Australian home loan portfolio to a unit of Blackstone, a move that will end the bank's retail banking presence in Australia, according to a stock exchange filing on Friday. The sale is expected to result in an immaterial pre-tax loss of less than US$100 million for the group by the first half of 2027.

Coverage Comparison

The Guardian, reporting on the business closure, highlighted that HSBC is closing all of its 19 Australian branches over the next 18 months after selling its local mortgage and personal loan portfolio. The South China Morning Post focused on the deal's financial details, noting the sale price was based on the portfolio's value of A$36 billion (US$25 billion) as at the end of January, plus a premium related to changes in interest rates, collections received, and costs.

Key Claims

  • The sale of HSBC's US$25 billion Australian home loan portfolio to Blackstone is expected to result in an immaterial pre-tax loss of less than US$100 million by the first half of 2027, as reported by both sources.
  • The sale price was based on the portfolio's value of A$36 billion plus a premium, with net proceeds used for HSBC's corporate purposes, according to the South China Morning Post.
  • HSBC Australia's retail business will be wound down in a phased manner over the next 18 months, as reported by both sources.
  • HSBC will continue to operate private and institutional banking services in Australia after the sale, according to both sources.
  • The restructuring will incur US$300 million in restructuring costs and write-offs, and it is estimated that the recycling of foreign exchange reserve losses will amount to US$300 million in 2028, as reported by the South China Morning Post.
  • HSBC has 19 Australian branches, which will close in a phased manner, as stated by a spokesperson to The Guardian.
  • Blackstone has appointed lending group Pepper Money to service the loans after the sale is completed, which is expected to occur in the first half of 2027, according to The Guardian.
  • Australia's five biggest lenders control about 80% of the mortgage market, according to regulatory data cited by The Guardian.
HSBC's decision follows a strategic review of its Australian retail business and forms part of the ongoing simplification of the HSBC Group, the bank said. The lender will continue to invest in and grow its corporate and institutional banking franchise across Australia and New Zealand, supporting corporate and institutional clients, as well as private banking and asset management businesses. After the sale, HSBC Australia's corporate and institutional banking, asset management, and private banking businesses will be consolidated into the Hongkong and Shanghai Banking Corporation Sydney branch.

HSBC has 2,000 employees in Australia and first gained commercial banking licences for the local market in 1986. A spokesperson said it was too soon to share details about job losses, given the sale is subject to regulatory approval. The bank will need the majority of its retail banking team during the wind down period. Blackstone's appointee, Pepper Money, is expected to advertise roles that may be filled by HSBC employees.

HSBC's non-mortgage retail products, including transaction accounts, savings and term deposits, and credit cards, will be phased out. Overseas banks have historically found it challenging to establish a profitable foothold in Australia's US$2.5 trillion mortgage market, given the entrenched dominance of Australia's "big four" retail banks as well as Macquarie. Several overseas banks, including Citi, have previously exited the Australian mortgage market.