HSBC considers sale of Australian consumer banking unit

Move aligns with strategy to streamline global operations

HSBC considers sale of Australian consumer banking unit

HSBC Holdings is considering options for its consumer banking operations in Australia, which could include a sale, as part of a broader effort to streamline its global business.

The lender is expected to retain its commercial banking division in the country, enabling it to continue servicing corporate clients with international operations, an unnamed source told Bloomberg.

The consumer banking segment, which includes over 40 branches and offices along with retail loan books and customer accounts, may attract interest from Australia’s largest banks, the source added.

Discussions are in the early stages, and no final decision has been made, sources said. HSBC declined to comment on the matter.

If a sale proceeds, the Bloomberg report noted that it would align with chief executive Georges Elhedery’s strategy to simplify HSBC’s operations. The bank recently reorganised its global structure, creating an Eastern region covering Asia Pacific and the Middle East and a Western region encompassing Europe, the Americas, and non-ring-fenced UK operations. Hong Kong and the UK remain standalone units.

HSBC has been reducing its presence in underperforming or non-core markets. Last year, the bank sold its Canadian business to Royal Bank of Canada for $10.1 billion and exited its loss-making consumer operations in France and the United States. It has also explored divestments of wealth management and custody businesses in Germany. 

HSBC began operations in Australia in 1965 and obtained a commercial banking licence in 1986. As of November 2024, the bank held $31.8 billion in mortgages, $516 million in credit card debt, and $538 million in other household loans, according to regulatory filings. 

Industry analysts suggest that Australia’s big four banks – Commonwealth Bank of Australia, Westpac, NAB, and ANZ Group – are likely contenders if they pursue the opportunity. 

The Australian banking sector has seen significant consolidation in recent years. In 2022, Citigroup sold its Australian consumer unit to NAB, while ANZ completed its acquisition of Suncorp Group’s banking arm last year.

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