HSBC announced that it will cease retail banking operations in Australia, closing all 19 branches in a phased manner over the subsequent 18 months. The London-based lender is selling its mortgage and personal loan portfolio to asset management firm Blackstone as part of a strategic review and simplification effort. The bank will retain its private and institutional banking operations in the country.
The transaction is expected to complete in the first half of 2027, subject to regulatory approval. Blackstone has engaged Pepper Money, a lending services firm, to manage the loans following completion of the sale. HSBC’s consumer banking products, including transaction accounts, savings accounts, term deposits, and credit cards, will be phased out. Customers began receiving notifications about the changes, with further communications expected in the coming weeks.
HSBC currently employs approximately 2,000 people in Australia, where it has maintained a commercial banking presence since 1986. A company spokesperson indicated that detailed information regarding workforce reductions would be provided once the sale receives necessary regulatory approval. The bank stated it would need to retain most of its retail banking staff during the wind-down period, and Pepper Money is expected to open employment opportunities that could be filled by departing HSBC employees.
The exit reflects ongoing challenges faced by international financial institutions in Australia’s mortgage market, which is dominated by the country’s four largest banks and Macquarie, collectively controlling approximately 80 percent of the sector. Other foreign banks, including Citigroup, have similarly withdrawn from Australian retail banking in recent years. The Finance Sector Union’s national secretary described the closures as emblematic of declining in-person banking availability and called on Blackstone to consider maintaining some branch locations for customers.
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