The A$36 billion mortgage and personal loan sale starts HSBC’s exit from Australian retail banking, with closing targeted in the first half of 2027 pending approvals.
HSBC Holdings has agreed to sell its Australian mortgage and personal loan portfolio, with a book value of about A$36 billion ($25 billion), to Virgo BidCo Pty Ltd, an entity wholly owned by funds managed by Blackstone affiliates, in one of the largest mortgage portfolio deals on record. Announced on July 31, the transaction formally begins HSBC’s exit from Australia’s retail banking market and is expected to close in the first half of 2027, subject to regulatory and competition approvals. HSBC said it expects a loss of less than $100 million on the sale, plus $300 million of restructuring charges and asset write-downs tied to winding down the rest of its Australian retail business over the next 18 months. After completion, Pepper Money Limited will service the portfolio, while HSBC said the move will not affect its Common Equity Tier 1 capital ratio and that Australia will remain part of its global network through its corporate and institutional banking, private banking and investment management businesses.