HSBC Bank Australia has announced the sale its portfolio of Australian home loans and personal loans.
HSBC Bank Australia, part of global banking giant HSBC Group, has agreed to sell its portfolio of Australian home loans and personal loans valued at about $36 billion to Blackstone, with Pepper Money appointed to manage the book after completion.
HSBC announced on Friday (31 July), that it had entered into a binding agreement to transfer the portfolio to US-based Blackstone, a large alternative asset manager.
The transaction, expected to close in the first half of 2027 (subject to regulatory approvals) – represents one of the largest home loan portfolio deals ever completed globally.
HSBC told affected borrowers and intermediaries that parties involved would coordinate closely on implementation.
“All parties will work closely together to enable a smooth transition for customers” and confirmed that customers could continue to bank as normal for now.
HSBC added that customers would receive detailed information outlining upcoming changes, stressing that “there is no action required at this point.”
Alongside the portfolio sale, HSBC plans to withdraw from the remainder of its Australian retail operations.
The bank said the products not included in the sale – including transaction accounts, savings and term deposits, credit cards, foreign currency accounts and wealth and investment offerings – would be wound down in stages over the next 18 months.
It said it expected the disposal to generate an “immaterial loss” at group level.
Strategy pivot towards institutional and wealth
HSBC framed the deal as a targeted reshaping of its Australian franchise rather than an exit from the country altogether.
In a statement on its future focus, the bank said “Australia remains an important part of HSBC’s global network. HSBC will continue to invest in and grow its Corporate and Institutional Banking franchise across Australia and New Zealand to support corporates, institutions, superannuation funds and innovative scale-ups with pursuing their domestic and offshore growth ambitions.”
“HSBC will also continue to invest in and grow its Asset Management and Private Banking businesses, which will continue to operate in Australia.”
Explaining the decision to sell the loan book and close the rest of the retail business, HSBC pointed to group‑wide priorities.
“The decision to sell the portfolio and wind down the remainder of the retail business follows a strategic review of HSBC Australia’s retail business and forms part of the ongoing simplification of the HSBC Group,” the bank said.
“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 bank said. Finance.”
'The largest home loan portfolio transaction globally'
Blackstone, which is acquiring the portfolio through its private credit platform, highlighted the scale and wider impacts of the deal.
“This represents the largest home loan portfolio transaction globally, demonstrating Blackstone’s ability to deliver scaled, complex capital solutions to back leading financial institutions and critical sectors of the real economy,” it said.
Non‑bank lender Pepper Money will not be buying the loans but will instead service the book on Blackstone’s behalf once the deal completes.
HSBC confirmed that Pepper would act as servicer, providing ongoing support to customers and brokers, and noted that Pepper would be advertising roles, with HSBC Australia employees to hear more in coming months.
Pepper described the servicing mandate as a strategic fit for its growing fee‑based business.
“The transaction aligns with Pepper Money’s strategy to grow its capital-light servicing business, which provides annuity-style earnings, operational scale and diversification benefits,” the non-bank lender said.
Pepper Money CEO Mario Rehayem said the appointment underscored the strength of Pepper’s platform and experience in handling large portfolios.
“Pepper Money’s appointment as the loan manager reflects the strength of our established platform and our experience supporting customers across large, complex portfolios. For more than 26 years, we have both originated and serviced loans on behalf of third parties,” Rehayem said.
“With the scale, systems, and focus on customer care, we are well placed to provide a positive customer and partner experience through transition.
“Alongside Blackstone and HSBC, our focus will be on disciplined execution, continuity for customers, and clear, genuinely helpful support at every step.”
[Related: Banks slammed over offset failures in ASIC probe]
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