- HSBC is closing its retail banking business in Australia
- The bank's $36 billion loan book has been sold to US private equity giant Blackstone, subject to regulatory approval
- Non-bank lender Pepper Money will continue to manage and service the bank's home and personal loans
HSBC informed customers on Friday it will be shutting down its retail banking operations in Australia following a review.
It has reportedly sold its $36 billion home and personal loan portfolio to US-based private equity firm Blackstone, subject to regulatory approval.
The deal would see ASX-listed non-bank lender Pepper Money take over the management and servicing of HSBC's existing loans from the first half of 2027.
HSBC said it would work together with Pepper Money to ensure the transfer is a smooth experience for its customers.
The bank is currently Australia's tenth-largest home lender.
The remainder of HSBC's business - deposits, credit cards, foreign currency accounts, wealth and investment products - will be wound down over the next 18 months.
No new applications for any HSBC products are being accepted.
Retail closure amid global review
It's understood the decision to close the retail banking business in Australia follows a strategic review and is part of an ongoing simplification of HSBC's global operations.
The bank, based in London, established operations in Australia more than 60 years ago.
It originated in Hong Kong in 1865 as the Hong Kong & Shanghai Banking Corporation to finance trade between Asia and Europe.
While its retail business will close, its corporate and institutional banking, private banking, and asset managements business will remain in Australia.
HSBC has advised customers its retail banking service and support teams will remain available during the transition period.
It also warned them scammers may use the opportunity to contact customers pretending to be from HSBC and advised them to use the call verify function on their HSBC mobile app.
There is no immediate action HSBC retail customers need to take although the bank said it will be sending further communications with timelines and instructions over the coming weeks.