HSBC has agreed to sell its $25.3bn Australian mortgage book, worth A$36bn, to funds managed by Blackstone as part of a global restructuring under chief executive Georges Elhedery. The asset manager emerged as the preferred bidder for the Australian business and said the deal is the largest home‑loan portfolio transaction ever agreed, a “marquee investment” in its push to expand private credit globally.

HSBC’s disposal of its Australian loan book will result in a $100mn loss and is the bank’s second exit this month after selling its Singapore insurance business to Allianz for $2.1bn. Elhedery has also shut key parts of its investment banking business in the UK, Europe and the Americas as part of a strategy overhaul.

The sale means HSBC will wind down its residual retail business at a cost of $300mn and remain in Australia only for corporate and institutional banking. Blackstone has partnered with local non‑bank lender Pepper Money to service the loans, and Mike Culhane of Blackstone described the asset as a “high quality” purchase.

The decision follows Citigroup’s 2021 sale of its Australian operations to NAB and reflects a broader shift among global banks to scale back retail footprints in favour of core commercial activities.