HSBC Sells Australian Mortgage Portfolio for $25B to Blackstone Affiliate

HSBC Holdings has agreed to sell its Australian mortgage portfolio worth US$25 billion to an affiliate of Blackstone, according to a Friday exchange filing. The deal is expected to result in a negligible pre-tax loss under US$100 million for the group by the first half of 2027. HSBC noted that the purchase price was determined by the portfolio's valuation of A$36 billion (US$25 billion) at the close of January, taking into account interest rate movements, collected payments, and associated expenses.

The sale stems from a strategic assessment of HSBC Australia's retail arm and aligns with the broader streamlining of the HSBC Group. HSBC remains committed to expanding its corporate and institutional banking presence in Australia and New Zealand, while also maintaining its private banking and asset management offerings.

Following the completion of all transactions and restructuring, the recycling of foreign exchange reserve losses is projected to total US$300 million in 2028. This process will involve a phased-out exit from HSBC Australia's retail operations over the next 18 months.