HSBC Holdings plc (HSBC) has agreed to sell its Australian home-loan and personal-loan portfolio, carrying an outstanding balance of AUD36.00 billion (USD24.90 billion as at 31 March 2026), to Virgo BidCo Pty Ltd, an entity wholly owned by funds managed by affiliates of Blackstone Inc.
The cash consideration equals the AUD36.00 billion base amount plus adjustments for new originations, interest-rate movements, collections and costs up to completion, and is capped under a competitively-tendered Asset Sale and Purchase Agreement signed on 31 July 2026. Closing is targeted for 1H 2027, contingent on foreign-investment, banking and competition approvals; the agreement carries mutual termination fee provisions and a 12-month long-stop date.
Financial impact • HSBC anticipates an immaterial pre-tax loss of less than USD0.10 billion by 1H 2027 on the portfolio sale. • Restructuring costs and write-offs linked to winding down the remainder of HSBC Bank Australia Ltd.’s retail operations and transferring other activities to The Hongkong and Shanghai Banking Corporation Ltd. Sydney Branch are estimated at USD0.30 billion during 2026-2027. • Recycling of approximately USD0.30 billion in foreign-currency translation reserve losses is expected by 2028, with no incremental CET1 ratio impact. • Net proceeds will be used for general corporate purposes. HSBC Group is also considering, on arm’s-length terms, providing senior financing for a substantial portion of the purchase price.
Strategic actions HSBC will wind down its remaining Australian retail banking business over the next 18 months. Corporate & Institutional Banking, Asset Management and Private Banking activities will be consolidated into the Sydney branch, streamlining the group’s local footprint while continuing to serve corporate, institutional and high-net-worth clients across Australia and New Zealand.
Blackstone, the world’s largest alternative asset manager with USD1.30 trillion in AUM, will assume ownership of the loan book, while Pepper Money Ltd. will service the portfolio post-completion.