The London-headquartered HSBC is closing all Australian branches over the next ۱۸ months after selling its local mortgage and personal loan portfolio to the global asset giant Blackstone.
The transaction will end HSBC’s decades-long retail presence in Australia, although it will continue to operate private and institutional banking services, the company announced on Friday.
HSBC has ۱۹ Australian branches, which will close in a “phased manner”, a spokesperson told Guardian Australia.
The bank representative said it was too soon to share details about job losses, given that the sale is subject to regulatory approval. The bank would need the majority of its retail banking team during the winding down period, the spokesperson said.
HSBC has ۲,۰۰۰ employees in Australia and first gained a commercial banking licences for the local market in ۱۹۸۶, according to its website.
Blackstone has appointed the lending group Pepper Money to service the loans after the sale is completed, which is expected to occur in the first half of ۲۰۲۷.
Pepper is expected to advertise roles that may be filled by HSBC employees.
HSBC’s non-mortgage retail products – including transaction accounts, savings and term deposits and credit cards – will be phased out.
“The decision to sell the portfolio and wind down the remainder of the retail business follows a strategic review of HSBC Australia’s retail business and forms part of the ongoing simplification of the HSBC group,” the bank said.
HSBC’s consumer business has about $۳۶bn of loans, mainly consisted of mortgages.
Overseas banks have historically found it challenging to establish a profitable foothold in Australia’s $۲.۵tn mortgage market, given the entrenched dominance of Australia’s big four retail banks, as well as Macquarie.
Australia’s five biggest lenders control about ۸۰% of the mortgage market, according to regulatory data.
Several overseas banks, including the New York-headquartered Citi, have previously exited the Australian mortgage market.
