(31 July 2026 – Australia) HSBC has agreed to sell its $36 billion Australian loan book to Blackstone and will wind down its remaining retail banking operations over the next 18 months.
HSBC has agreed to sell its $36 billion Australian home and personal loan portfolio to Blackstone, marking a significant step in the bank’s exit from Australia’s retail banking market.
HSBC has agreed to sell its $36 billion Australian home and personal loan portfolio to Blackstone, marking a significant step in the bank’s exit from Australia’s retail banking market while giving the global investment giant one of the largest credit investments ever completed in Australia.
The portfolio, comprising Australian home loans and personal loans, has a total book value of approximately $36 billion.
Pepper Money will become the portfolio’s servicer following completion of the sale, taking responsibility for the ongoing administration and management of the loans and supporting customers and mortgage brokers through the transition.
Blackstone described the acquisition as the largest home loan portfolio transaction globally, saying it reinforced the firm’s long-term commitment to Australia and its strategy of deploying capital into the country’s housing market.
The transaction is expected to complete in the first half of 2027, subject to regulatory approvals.
In addition to the approvals outlined by HSBC, Pepper Money said completion would require approval or no objection under the Foreign Acquisitions and Takeovers Act, consent under the Banking Act, clearance from the Australian Competition and Consumer Commission, and regulatory relief from the Australian Securities and Investments Commission relating to redraw and line of credit facilities.
Alongside the portfolio sale, HSBC confirmed it would wind down the remainder of its Australian retail banking business over the next 18 months following a strategic review.
Products scheduled to be phased out include transaction accounts, savings accounts, term deposits, credit cards, foreign currency accounts, and wealth and investment products.
Existing customers have been told they can continue banking as normal while the transition takes place. HSBC said customers would receive further information about changes to their products in due course and that no action was required at this stage.
The bank said the decision to sell the loan portfolio and close the remainder of its retail banking operations formed part of the HSBC Group’s broader simplification strategy, with the lender instead concentrating on businesses where it believes it has stronger growth prospects.
Rather than withdrawing from Australia altogether, HSBC said it would continue investing in its corporate and institutional banking, private banking and asset management businesses.
Its corporate and institutional banking franchise, which operates across Australia and New Zealand, will continue supporting corporates, institutions, superannuation funds and innovative scale-ups pursuing domestic and offshore growth.
HSBC said it had increased corporate and institutional banking client numbers by 30 per cent over the past three years and launched HSBC Innovation Banking in 2025, remaining the only bank to offer both venture debt and specialist venture banking support.
Pepper Money said the servicing agreement aligned with its strategy to expand its capital-light servicing business, which provides annuity-style earnings while increasing operational scale and diversifying its revenue streams.
Blackstone’s head of international for credit and insurance, Dan Leiter, said the acquisition reflected the firm’s international expansion ambitions in private credit.
“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.”
Blackstone’s head of international business development for asset based finance, Mike Culhane, said the firm aimed to ensure customers experienced a smooth transition.
“We are pleased to invest in a high-quality Australian home loan portfolio while supporting a seamless transition for HSBC customers and helping them maintain competitively priced loans. With Pepper Money providing experienced local loan management, customers can continue to receive high standards of service.”
Pepper Money chief executive Mario Rehayem said the appointment reflected the lender’s experience managing large loan books.
“Pepper Money’s appointment as the loan manager reflects the strength of our established platform and our experience supporting customers across large, complex portfolios.”
Pepper Money, which has more than 26 years’ experience originating and servicing loans, also confirmed it would advertise roles that HSBC Australia employees would hear more about in the coming months as the transition progresses.
HSBC said the disposal of the portfolio was expected to generate an immaterial loss for the HSBC Group.