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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

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A suburban housing estate in Australia. HSBC has agreed to sell a US$25 billion Australian home loan portfolio to a unit of Blackstone, resulting in an immaterial pre-tax loss of less than US$100 million. Photo: Shutterstock
Enoch Yiu
HSBC Holdings has agreed to sell its US$25 billion Australian home loan portfolio to a unit of Blackstone, which is expected to result in an immaterial pre-tax loss of less than US$100 million for the group by the first half of 2027, according to a stock exchange filing on Friday.

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 remainder of HSBC Australia’s retail business will be wound down in a phased manner over the next 18 months, the lender said in the exchange filing.

“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.”

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