HSBC said on Friday it would sell its A$36 billion ($25.30 billion) Australian home and personal loan portfolio to investment giant Blackstone, marking its phased exit from retail banking in the country.
The portfolio will be acquired by Virgo BidCo, wholly owned by funds managed by affiliates of Blackstone, in a deal expected to close in the first half of 2027. The final purchase price will be adjusted before completion to reflect factors including new loan originations.
HSBC said the sale followed a strategic review as part of the group’s efforts to simplify operations under CEO Georges Elhedery. The remainder of HSBC Australia’s retail business would be wound down in phases over the next 18 months.
Since taking over in September 2024, Elhedery has reorganised the bank along East-West lines, exited sub-scale investment banking businesses in the U.S. and Europe, and reduced senior management ranks.
The bank said it would retain and grow its corporate and institutional banking, private banking and asset management operations in Australia following the retail exit.
In a separate statement, Blackstone said the transaction underscored its long-term commitment to Australia, where it has invested for nearly two decades, and reflected its interest in the country’s housing market.
HSBC expects the disposal to result in an immaterial loss of less than $100 million by the first half of 2027. It also expects to incur about $300 million in restructuring costs and write-offs linked to the wind-down of the retail business.
After this, it expects to recycle about $300 million of foreign currency translation reserve losses to its income statement, with no incremental impact on common equity tier 1 capital ratio — one of the key metrics for a bank’s financial strength and capital adequacy.
($1 = 1.4231 Australian dollars)
Reuters
