HSBC Australia, a subsidiary of HSBC Holdings (00005), plans to sell its Australian housing and personal loan portfolio worth 36 billion Australian dollars to Blackstone

According to the Zhitong Finance App, HSBC Holdings (00005) announced that its indirect wholly-owned subsidiary HSBC Australia Limited (HSBC Australia) entered into an agreement (asset sale agreement) on July 31, 2026 (Sydney time and before the Hong Kong Stock Exchange's current trading time). Based on this, Virgo BidCo Pty Ltd (the buyer, wholly owned by a fund managed by a Blackstone Inc. (Blackstone) affiliate) has agreed to acquire the Australian mortgage and personal loan portfolio provided by HSBC Australia.

As of March 31, 2026, the total carrying value of the combination was approximately A$36 billion. Pepper Money Limited (service provider) will act as the service provider for the portfolio after the sale is completed, and will be responsible for the ongoing administration and management of the loan.

The sale is expected to result in a modest loss of less than $100 million for the HSBC Group in the first half of 2027. The remaining portion of HSBC's retail business in Australia will be phased out over the next 18 months. Subsequently, HSBC Australia's corporate and institutional financial management, investment management and private banking services in Australia will be merged into the Sydney branch of Hong Kong and Shanghai Banking Corporation Limited, subject to regulatory approval before implementation, thus simplifying the physical structure of HSBC. HSBC expects to incur $300 million in related restructuring costs and write-offs.

After completion of the sale and related business reduction actions, HSBC expects to transfer an estimated US$300 million in foreign currency conversion reserve circulation losses in the balance sheet. HSBC continues to invest and expand corporate and institutional banking services in Australia and New Zealand to support the banking needs of corporate and institutional customers, and continues to develop its private banking and investment management business.

The sale was based on a strategic review of HSBC's retail business in Australia, and is also part of the HSBC Group's continued streamlining of its business structure. HSBC Holdings focuses on areas where it has a clear competitive advantage and can best drive the group's development and help customers, thereby enhancing its leadership position and expanding its market share.