HSBC is reportedly considering a sale of its Australian consumer banking business.
A sale would be part of HSBC’s ongoing efforts to pare down its organisational structure, it is believed. Talks are still at an early stage, according to Bloomberg, and a sale would not affect HSBC’s Australian commercial banking operations.
“The new structure will ensure we can better focus on the businesses where we have clear competitive advantage and the greatest opportunities to grow – and will help us to deliver best-in-class products and service excellence to our customers,” HSBC Group CEO Georges Elhedery said last month, after appointing a new slate of leadership teams.
National Australia Bank is expected to be a top contender to buy HSBC’s Australian business, according to The Australian.
A deal would reportedly likely be worth at least A$4.1 billion.
HSBC agreed to sell its German private banking arm to BNP Paribas in September. The company’s Canadian operations were sold to Royal Bank of Canada for US$10.1 billion, with the transaction complete in March 2024.
It signed a memorandum of understanding last month that would potentially see HSBC Assurances Vie, its French life insurance division, sold to Matmut.
HSBC’s Australian arm had A$31.8 billion in mortgages, $516 million in credit cards, and $538 million in household loans, as of November. Australia is HSBC’s seventh-largest market.
HSBC’s share price (LSE: HSBA) closed at UK£825.50, up from its previous close at £825.30. Its market capitalisation is £1.5 billion.