HSBC Bank Australia has reached a deal to divest its Australian mortgage and personal lending portfolio to Blackstone, with the assets carrying a book value of about A$36bn ($25bn).
The transaction is due to close in the first half of 2027, pending regulatory clearance.
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Pepper Money will act as the loan management partner for the portfolio.
The lender was founded in 2000 in Australia as a specialist in residential home loans and operates across Australia and New Zealand.
It will work with Blackstone on the transfer of the portfolio from HSBC and the handling of borrower accounts.
Blackstone Credit & Insurance international head Dan Leiter said: “International expansion is a major priority for our private credit business. Blackstone’s global credit platform, deep origination capabilities, and long-standing relationships position us to deliver unique value to clients around the world. This marquee investment is a testament to the power of our franchise and our conviction in the growing opportunities in credit across Asia.”
“Australia remains an important part of HSBC’s global network.”, the bank said in a statement.
HSBC said it would keep investing in and expanding its Corporate and Institutional Banking operations in Australia and New Zealand, serving companies, institutions, superannuation funds and scale-up businesses pursuing growth at home and overseas.
The bank would continue to develop its asset management and private banking operations in Australia.
Retail operations in Australia that are not part of the sale will be closed in stages over the next 18 months.
HSBC said retail customers could continue using their banking services as usual for the time being and would later receive details about changes affecting their products.
According to HSBC, the sale of the portfolio and the closure of the remaining retail business follow a review of its Australian retail operations and are part of a wider effort to simplify the group.
In June, Bloomberg, citing sources, reported that Emirates NBD is in talks to buy HSBC’s operations in Türkiye.
In May this year, OCBC Indonesia signed a deal with PT Bank HSBC Indonesia to assume the assets and liabilities connected to HSBC Indonesia’s retail banking and wealth management operations.
HSBC Sri Lanka signed a binding agreement in September 2025, to transfer its retail banking operations to Nations Trust Bank (NTB).
In July last year, HSBC disclosed its plan to withdraw from its International Wealth and Premier Banking (Retail Banking) operations in Bangladesh.
