HSBC is closing all 19 Australian branches over the next 18 months after selling its mortgage and personal loan portfolio to Blackstone, ending decades of retail banking in the country. The London-based bank will continue private and institutional banking services, with the sale expected to complete in the first half of 2027, subject to regulatory approval.

The bank's consumer loan book holds about $36bn in assets, mostly mortgages. Blackstone has appointed lending firm Pepper Money to service the loans after completion. HSBC has 2,000 employees in Australia; the bank said it was too early to detail job losses but would need most of its retail team during the wind-down period.

The exit reflects the difficulty foreign banks face competing in Australia's mortgage market, dominated by the big four domestic lenders and Macquarie, which together control about 80% of home loans. Citi and other overseas banks have previously withdrawn from Australian mortgage lending, Guardian business reports.