All HSBC bank branches in Australia are set to close following the sale of its $36 billion mortgage and personal loan book to US financier Blackstone.
The banking giant announced on Friday it had reached an agreement to offload the portfolio, with non-bank lender Pepper Money set to manage the loans once the deal is complete.
Licensed since Paul Keating opened the market in 1986, HSBC has announced it will exit Australian retail banking. AP
The transaction, valued at about $36 billion, is expected to be finalised in the first half of 2027, subject to regulatory approvals.
HSBC said customers don't need to take any action right now, with more updates to come as the transition gets underway.
“Customers can continue to bank with us as normal and will receive information from HSBC outlining the subsequent changes to the products held, noting there is no action required at this point,” the bank said in a statement.
As part of the move, HSBC will phase out its remaining Australian retail business over the next 18 months.
However, its corporate and institutional banking, private banking and asset management divisions will stay.
It said the decision followed a strategic review of its local retail operations and formed a broader streamlining of the HSBC Group.
Pepper Money, one of Australia’s largest non-bank lenders, will service the portfolio on Blackstone’s behalf after settlement, providing ongoing support for customers and mortgage brokers.
Staff impacted by the sale are expected to be offered opportunities with Pepper Money, which said it would start posting job opportunities in the coming months.
According to an April 2026 S&P Global report, HSBC ranks as Europe’s second-largest bank, holding $3.21 trillion in assets.
But domestically, it never quite managed to crack the big four’s stranglehold on Australian retail banking.
“HSBC is focused on increasing leadership and market share in the areas where it has clear competitive advantage and the greatest opportunities to grow and support its clients,” the statement read.
