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HSBC exits Australian retail banking with Blackstone loan sale
HSBC will sell its Australian mortgage and personal loan portfolio to Blackstone, with loan servicing moving to Pepper Money after the deal is expected to close in the first half of 2027.
HSBC says it will close all of its Australian retail branches over the next 18 months and exit the Australian retail banking market, after agreeing to sell its local mortgage and personal loan portfolio to Blackstone. The London-headquartered bank said the transaction will end its decades-long retail presence, though it will continue operating private and institutional banking services in Australia.
Guardian Business reports that HSBC has 19 Australian branches that will close in a phased manner. The outlet also reports the company said it is too early to provide details on job losses because the sale is subject to regulatory approval, and HSBC expects to use most of its retail banking team during the wind-down period.
HSBC’s non-mortgage retail products, including transaction accounts, savings and term deposits, and credit cards, will be phased out. The bank said it is winding down retail as part of a strategic review and ongoing simplification of HSBC Australia’s retail business.
According to Guardian Business, HSBC has about $36 billion of consumer loans in Australia, mainly mortgages. Blackstone has appointed Pepper Money to service the loans once the sale is completed, which is expected in the first half of 2027, the outlet said, noting overseas banks have historically struggled in the $2.5 trillion Australian mortgage market dominated by major local lenders.