SYDNEY, April 6, 2026, 23:12 AEST
Blackstone has its eye on HSBC’s A$26 billion Australian loan book, with early bids set for the end of April, according to The Australian’s DataRoom on Monday. Citi, managing the sale, could see competing offers from Apollo Global Management, Cerberus Capital Management, and Ares Management, the report added.
This step is significant for Chief Executive Georges Elhedery as he pushes ahead with trimming lower-yield segments and concentrating HSBC’s efforts on its main markets. Back in February, HSBC raised its return-on-tangible-equity goal to at least 17% through 2028, aiming for revenue growth over that same stretch—ratcheting up the pressure to turn asset sales and cost trimming into solid gains.
Investors are eyeing HSBC’s ability to rein in expenses even as it ramps up investment in technology. Jefferies analysts described the bank’s robust 2025 results as likely to please the market, but flagged a potential sticking point: some shareholders might push back on the projected 1% rise in costs for 2026, given HSBC’s heavier AI spending.
Blackstone’s push, according to DataRoom, is fronted by senior managing director Mike Culhane—who also co-founded Pepper Financial Group. The buyout giant is eyeing a bundle that includes around A$26 billion in loans alongside A$16 billion in deposits. As for HSBC, the report cites lagging returns, regulatory hurdles, and tangled IT systems as the main reasons for offloading the unit.
The mandate’s changed shape. HSBC initially looked at selling off its entire Australian retail bank, according to earlier Australian Financial Review reporting, but ended up focusing just on the loan book late last year. After that, Citi kicked off a new auction process in January.
HSBC’s cutbacks aren’t limited to just one area. Back in February, Reuters said the bank kicked off efforts to sell its Singapore life insurance arm, aiming for a price north of $1 billion. “We want to be a leader in what we do, or let others do it better than us,” Elhedery told investors on the call. Reuters
HSBC’s annual results included a comment from Elhedery, who called the bank a “simple, more agile, focused bank.” Pretax profit for 2025 came in at $29.9 billion, with operating expenses still aimed at roughly 1% growth in 2026. On its investor website, HSBC’s London-listed stock traded at 1,272.8 pence, off 13.8 pence, while Hong Kong shares closed at HK$130 on Monday. Back in January, the bank briefly hit a $300 billion market cap for the first time, according to Reuters. HSBC
The Australian sale remains up in the air. The process was already scaled back earlier, and according to local reports, price will depend on funding, regulatory issues, and the level of systems separation required from a potential buyer. All of that means the deal could still shift form.
