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HSBC to sell A$36b Australian home-loan portfolio to Blackstone unit
The deal is expected to trigger restructuring costs and write-offs totaling US$300 million, with HSBC saying it will consolidate its Australian corporate and institutional banking and related units into the Sydney branch.
HSBC Holdings agreed to sell an Australian home-loan portfolio valued at A$36 billion, equivalent to about US$25 billion, to a unit of Blackstone, according to a stock exchange filing cited by SCMP Economy. HSBC expects the transaction to produce an immaterial pre-tax loss of less than US$100 million by the first half of 2027.
SCMP Economy reported the sale price was based on the portfolio’s value at the end of January, plus a premium tied to changes in interest rates, collections received, and costs. HSBC said the net proceeds will be used for corporate purposes.
The lender also said the disposal follows a strategic review of its HSBC Australia retail business as part of simplifying the group. After completion, HSBC Australia’s corporate and institutional banking, asset management, and private banking businesses in Australia will be consolidated into the Hongkong and Shanghai Banking Corporation Sydney branch.
HSBC told SCMP Economy that the restructuring will involve US$300 million in restructuring costs and write-offs. The bank estimated that the recycling of foreign exchange reserve losses will total about US$300 million in 2028.