HSBC to pull out of Australian retail banking market
Summary
HSBC will close all its retail bank branches in Australia over the next 18 months after selling its mortgage and personal loan business to Blackstone. The bank will keep private and institutional banking services but will gradually stop other retail products like savings accounts and credit cards.Key Facts
- HSBC is closing 19 retail branches in Australia in stages over 18 months.
- The bank sold its local mortgage and personal loan portfolio to Blackstone.
- Blackstone will have Pepper Money manage the loans after the sale finishes, expected in early 2027.
- HSBC will stop offering non-mortgage retail products, including transaction accounts and credit cards.
- The sale follows a strategic review to simplify HSBC’s business in Australia.
- HSBC has about 2,000 employees in Australia and has been in the retail market since 1986.
- Australia’s mortgage market is about $2.5 trillion, dominated by five big lenders holding 80% of the market.
- Other foreign banks, like Citi, have previously left the Australian mortgage market due to tough competition.
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