HSBC's strategic withdrawal from Australia
HSBC, a major London-based bank, announced that it will wind down its retail operations in Australia by 2027. The move comes after HSBC sold its mortgage and personal loan portfolios to Blackstone for an undisclosed amount.
The decision ends HSBC’s more than 30-year retail presence in Australia, with its 19 branches to be closed in a “phased manner” over the next 18 months. A spokesperson said it is too early to estimate job losses, as the sale requires regulatory approval.
HSBC currently employs 2,000 people in Australia and first entered the market in 1986. It will maintain private and institutional banking services, but transaction accounts, savings, credit cards, and term deposits will be phased out.
Pepper Money to manage loans post-sale
Blackstone has appointed Pepper Money to manage the $36 billion in loans, primarily mortgages. Pepper is expected to offer job opportunities that may be filled by former HSBC employees.
HSBC cited a strategic review as the reason for the withdrawal, aiming to simplify its global operations. Customers were notified via email, with further details expected in the coming weeks.
Challenges for foreign banks in Australia
HSBC is not the first foreign bank to struggle in Australia. The five largest lenders control 80% of the mortgage market. Other international banks, including Citi, have previously exited the sector.
Julia Angrisano, national secretary of the Finance Sector Union, criticized the branch closures, calling them “another nail in the coffin of in-person banking in this country.” She urged Blackstone to keep some physical locations open for customers.