JPMorgan has released a research report stating that HSBC Holdings PLC has announced the sale of its 36 billion Australian dollar (approximately 24.9 billion USD) mortgage and personal loan portfolio in Australia to a fund managed by Blackstone (BX.US). The transaction, which includes the planned phase-out of the remaining portion of its Australian retail business over the next 18 months, was within expectations.

JPMorgan views the sale as slightly positive, as it marks a further step in management's streamlining strategy. The financial impact is considered minor, with the sale expected to affect the 2027 Common Equity Tier 1 (CET1) ratio by only about 3 basis points. The cumulative loss from 2026 to 2028 is estimated at roughly 600 million USD, which represents just 0.5% of the market's expected pre-tax profit for that period.

HSBC Holdings PLC will retain and continue to invest in its corporate and institutional banking, private banking, and asset management businesses in Australia. JPMorgan believes the sale allows HSBC Holdings PLC to focus on operations where it has stronger competitive advantages and growth opportunities. The firm reiterates an 'Overweight' rating with a 200 HKD target price.

HSBC Holdings PLC expects the transaction to be completed in the first half of 2027, subject to regulatory and competition approvals. The group anticipates total costs and write-offs of approximately 300 million USD from 2026 to 2027, including roughly 200 million USD in costs and write-offs related to the portfolio and less than 100 million USD in portfolio sale losses. The group expects to reverse approximately 300 million USD in foreign exchange reserve losses by 2028, with no additional impact on CET1. All related impacts will be classified as significant non-recurring items and excluded from the base for the dividend payout ratio target.