HSBC agrees to sell its Australian home and personal loan portfolio, worth around $36 billion, to alternative asset manager Blackstone, with Pepper Money lined up as the new servicer. Regulators still need to sign off on the deal and completion is targeted for the first half of 2027.
HSBC signals that the transaction will result in only a small loss at group level, with more detail expected in its upcoming second-quarter update next week.
Under the agreement, Pepper Money will take over the day-to-day management and servicing of the loans once the deal closes. HSBC plans staff cuts as part of the move, though affected employees can apply for roles at Pepper Money linked to the transferred portfolio.
The bank is restructuring as part of a larger withdrawal from mass-market retail banking in Australia.
HSBC is also preparing to shut down its remaining Australian retail offerings, including transaction and savings accounts, term deposits and credit cards. Foreign currency accounts along with wealth and investment products are also slated to close as the bank winds down its presence.
Management sets an 18‑month timetable for this wider exit, giving customers time to migrate to other providers.
