HSBC (HKG:0005) has agreed to sell its AU$36 billion Australian home and personal loan portfolio to Blackstone, marking its exit from the country's retail banking business, according to a statement on Friday.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals. HSBC Australia will wind down its remaining retail operations in phases over the following 18 months.
After the wind-down, HSBC will consolidate its Australian corporate and institutional banking, asset management and private banking businesses into its Sydney branch, simplifying its local operating structure.
The disposal is expected to result in an immaterial pre-tax loss of less than $100 million. HSBC also expects to incur about $300 million in restructuring costs and write-offs.
The lender further expects to recycle about $300 million in foreign currency translation reserve losses to its income statement by 2028, with no impact on its common equity tier 1 ratio.
HSBC said the move follows a strategic review aimed at streamlining its Australian operations and focusing on businesses where it has a competitive advantage.