HSBC Australia to sell $36B loan book to Blackstone
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- HSBC (NYSE:HSBC) agreed to sell its $36 billion Australian home and personal loan portfolio to investment firm Blackstone (NYSE:BX).
- The transaction is projected to close in the first half of 2027 and will result in an immaterial loss of less than $100 million for HSBC.
- The bank stated that the sale supports its strategy to simplify operations under CEO Georges Elhedery.
HSBC (NYSE:HSBC) announced that it will sell its $36 billion Australian home and personal loan portfolio to Blackstone (NYSE: BX), marking its exit from retail banking in the country.
This divestment follows a strategic review by the bank and replaces earlier attempts to sell its broader retail operations in Australia.
"International expansion is a major priority for our private credit business," said Blackstone Credit & Insurance Head of International Dan Leiter.
The portfolio will be acquired by Virgo BidCo, an entity wholly owned by funds managed by Blackstone affiliates, with Pepper Money (ASX:PPM) appointed to service the loans.
The company stated that the transaction is expected to conclude in the first half of 2027, subject to regulatory approvals and conditions.
Following the announcement, the HSBC share price was down at $42.50.
The British lender plans to maintain its corporate and institutional banking, private banking, and asset management operations in Australia.
