HSBC to sell US$25b of Australian home loans to Blackstone at a loss of less than US$100m
The remainder of HSBC Australia’s retail business will be wound down in a phased manner over the next 18 months
The sale price was based on the portfolio’s value of A$36 billion (US$25 billion) as of the end of January, plus a premium related to changes in interest rates, collections received and costs. The net proceeds will be used for HSBC’s corporate purposes, the filing said.
“The disposal follows a strategic review of HSBC Australia’s retail business and forms part of the ongoing simplification of the HSBC Group,” the bank said. “HSBC continues to invest in and grow its corporate and institutional banking franchise across Australia and New Zealand, supporting the banking needs of corporate and institutional clients, as well as its private banking and asset management businesses.”
Following the completion of the sale, 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 said the restructuring would incur US$300 million in restructuring costs and write-offs. After all transactions and reconstruction, it is estimated that the recycling of foreign exchange reserve losses will amount to US$300 million in 2028.