HSBC agrees to sell AUD36 billion Australian home and personal loan portfolio to Blackstone
HSBC Bank Australia Limited (“HSBC Australia”), an indirect subsidiary of HSBC Holdings plc (“HSBC” or “HSBC Group”), has entered an agreement to sell its portfolio of Australian home loans and personal loans (“the Portfolio”) to Blackstone, the world’s largest alternative asset manager. The Portfolio has a total book value of approximately AUD36 billion (US$25 billion).
Pepper Money Limited (“Pepper Money”) will act as the servicer of the Portfolio following completion of the sale to provide ongoing support to customers and brokers. Pepper Money is one of Australia’s largest non-bank lenders, with over 26 years’ experience as a lender and service provider across a wide range of asset classes and portfolio transactions.
The sale of the Portfolio is expected to complete in the first half of 2027, subject to regulatory approvals. All parties will work closely together to enable a smooth transition for customers.
Pepper Money will be advertising roles which HSBC Australia employees will hear more about in the coming months.
HSBC’s strategic focus in Australia
Australia remains an important part of HSBC’s global network. HSBC will continue to invest in and grow its Corporate and Institutional Banking franchise across Australia and New Zealand to support corporates, institutions, superannuation funds and innovative scale-ups pursuing their domestic and offshore growth ambitions. HSBC will also continue to invest in and grow its Asset Management and Private Banking businesses, which will continue to operate in Australia.
Remainder of Australian retail business to be wound down
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. For now, customers can continue to bank with HSBC as normal and will receive information from HSBC outlining the subsequent changes to the products held, noting there is no action required at this point.
The decision to sell the Portfolio and wind down the remainder of the retail business follows a strategic review of HSBC Australia’s retail business and forms part of the ongoing simplification of the HSBC Group. HSBC is focused on increasing leadership and market share in the areas where it has clear competitive advantage and the greatest opportunities to grow and support its clients.
HSBC Group financial impact
The disposal of the portfolio is expected to generate an immaterial loss for the HSBC Group. Further information can be found in the HSBC Group’s stock exchange announcement.
