HSBC has revived a sale process linked to its Australian retail banking business, but the plan is now centred on offloading the loan portfolio rather than disposing of the entire operation at once, reported The Australian.
Non-binding first-round offers are understood to be due late April.
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DataRoom reveals that Blackstone is among the parties paying close attention to the opportunity.
When approached by Retail Banker International about the exit plan, the bank said: “We cannot comment on the media reports, as this is speculation.”
Citi is advising HSBC on the process.
Other investment firms that previously examined Westpac’s Rams home loans portfolio are expected to review the HSBC assets.
Potential participants are expected to include Apollo Global Management, Cerberus Capital Management and Ares Capital Management, as per the report.
In July 2025, the bank announced a strategic review of Australian retail business.
The bank has also confirmed that “the review is ongoing and we are considering all options, with no decisions made”.
“There is no change to any of our services for our customers”, it added.
HSBC’s Corporate and Institutional Banking (CIB), Private Bank and Asset Management businesses are not part of this review.
Cerberus was the buyer of Westpac’s auto loan unit in 2021 for up to $500m. Apollo is also pursuing loan assets being offered by the Bank of Queensland.
In November, Westpac’s $21.4bn Rams portfolio was bought by listed Pepper Money, which is 40% owned by KKR and Pimco.
HSBC’s Australian operation comprises a $26bn loan book and $16bn of deposits. Retail customer activity, including mortgages and credit cards, makes up 65% of the local banking business.
The exit method is described as comparable to how the bank handled its New Zealand retail departure several years ago.
The divestment approach fits with HSBC’s stated global direction of prioritising Hong Kong and the UK, while tightening its focus on Asian operations.
Meanwhile, according to a Bloomberg report last month, HSBC is considering cutting up to 20,000 roles, representing around 10% of its workforce, over the next few years in AI-driven overhaul.
