One of Australia’s major banks has announced that it is shuttering its retail business.
HSBC, formerly known as Hong Kong Shanghai Banking Corporation, announced on Friday that it is exiting Australia.
“HSBC has announced that it will be closing its retail banking business in Australia, following a review,” the bank said in a statement.
“The decision forms part of the simplification of the HSBC Group. This will be done in a phased manner over the next 18 months, subject to regulatory approvals.”
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HSBC is leaving Australia. Picture: NewsWire / Gaye Gerard
The decision means HSBC will exit the Australian consumer and retail lending market. However part of the bank will remain in Australia to invest and grow its corporate and institutional private banking and asset management divisions.
The bank will sell its entire $36bn Australian home and personal loan portfolio to American equity giant Blackstone. That sale is expected to be completed in the first six months of next year.
ASX-listed non-bank lender Pepper Money will take on the management and servicing of HSBC mortgages and personal loans next year,
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HSBC CEO Georges Elhedery is streamlining the bank’s global operations. Picture: Supplied
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The decision is a significant strategy shift from HSBC CEO Georges Elhedery, who took over the job in September 2024 and has aimed at streamlining the bank’s global operations.
WHAT DOES THIS MEAN FOR HSBC CUSTOMERS
All bricks and mortar HSBC branches in Australia will be shut down over the next 18 months.
HSBC’s retail business, including transactions accounts, savings accounts, term deposits and credit cards with be phased out and closed over the next year and a half.
As of Friday July 31, 2026, HSBC is not accepting any new retail banking applications.
HSBC will contact affected customers in coming weeks. The bank has warned customers to be wary of scammers attempting to take advantage of the situation.