HSBC to shut all Australian retail branches after selling loan portfolio to Blackstone

HSBC confirmed that all 19 of its Australian retail branches will be closed over the next 18 months following the sale of its mortgage and personal loan portfolio to Blackstone. The transaction, covering roughly $36 billion in consumer loans, marks the end of the bank’s decades-long retail presence in the country, though it will continue to offer private and institutional banking services. Blackstone has tasked Pepper Money with managing the loan book after the deal, which is slated to be finalized by mid-2027, and Pepper may recruit former HSBC staff.

HSBC will also phase out non-mortgage retail products such as transaction accounts, savings, term deposits and credit cards. A spokesperson said details on job losses are pending regulatory approval, but the majority of the retail team will be required throughout the wind-down. HSBC first entered the Australian market in 1986 and now employs about 2,000 people locally. The move reflects the difficulty overseas banks face competing with Australia’s dominant “big four” lenders.