Blackstone has agreed to acquire HSBC's Australian home and personal loan portfolio, with a total book value of approximately A$36 billion (US$25 billion), in a transaction that will see the UK-headquartered bank exit Australian retail banking and close all of its branches in the country.
Announced on 31 July 2026, the sale is to Blackstone, which HSBC described as the world's largest alternative asset manager. HSBC did not disclose the sale price but said the disposal is expected to generate an immaterial loss for the HSBC Group.
HSBC'S EXIT FROM AUSTRALIAN RETAIL
The remainder of HSBC Australia's retail business not included in the sale will be wound down in a phased manner over the next 18 months, and its 19 Australian branches will close. HSBC will continue to operate its Corporate and Institutional Banking, Private Banking and Asset Management businesses in Australia.
HSBC said the decision followed a strategic review of HSBC Australia's retail business and forms part of the ongoing simplification of the HSBC Group, which is focused on the areas where it has clear competitive advantage and the greatest opportunities to grow.
HSBC said customers can continue to bank as normal for now and will receive information about subsequent changes to their products, while Pepper Money will advertise roles that HSBC Australia employees will hear more about in the coming months.
SERVICING AND COMPLETION
Pepper Money has been appointed to service the loans after completion and provide ongoing support to customers and brokers. Pepper Money is one of Australia's largest non-bank lenders.
The sale is subject to regulatory approvals and is expected to close in the first half of 2027, and HSBC said all parties will work closely together to enable a smooth transition for customers.
The retail products to be wound down include transaction accounts, savings and term deposits, credit cards, foreign currency accounts, and wealth and investment products.
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