HSBC to Sell $25 Billion Australian Loan Portfolio to Blackstone

By P.R. Venkat

HSBC Holdings has agreed to sell its $25 billion Australian home and personal loan portfolio to private equity firm Blackstone as the U.K.-based lender continues to reshape its business and focus on its core markets.

Virgo BidCo, an entity wholly owned by funds managed by Blackstone affiliates, will acquire the portfolio, HSBC said Friday.

HSBC said it will wind down the remainder of its Australian retail business over the next 18 months. The lender's corporate and institutional banking, asset management and private banking businesses in Australia will be consolidated into its Sydney branch.

The U.K. lender expects to incur $300.0 million in associated restructuring costs and write-offs.

Europe's largest bank by assets has been undergoing a broad revamp, cutting costs and streamlining operations as it accelerates its pivot to Asia, where it generates the bulk of its profits.

In February, Chief Executive Georges Elhedery said that HSBC was on track to exit nonstrategic and low-returning businesses and achieve its $1.5 billion cost-reduction target by the first half, six months ahead of schedule.

Last week, the bank said it will sell its Singapore life and health insurance business to Allianz for $2.1 billion. Some of its other recent divestures include the sale of its International Wealth and Premier Banking business in Indonesia to Singapore's Oversea-Chinese Banking Corp., its U.K. life insurance manufacturing business to Chesnara, and its German private banking business to BNP Paribas.

HSBC expects the Blackstone deal to be completed by first half of 2027, subject to regulatory approvals.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

July 30, 2026 20:41 ET (00:41 GMT)