HSBC said Friday it expects to incur $300 million in restructuring costs and write-offs following its decision to sell its Australian home loans and personal loans portfolio and wind down the remainder of the retail business in the country over the next 18 months.

The portfolio's book value stood at around 36 billion Australian dollars ($25 billion) at the end of March, the lender said. The purchase price is AU$36 billion based on the portfolio at the end of January, plus an additional amount to reflect new loans originated between Jan. 31 and 14 days after the asset sales and purchase agreement date.

HSBC said it has agreed to sell the portfolio to Virgo BidCo, an entity owned by funds managed by affiliates of Blackstone, at an "immaterial loss" to the HSBC Group.

The transaction, which is subject to approval, is expected to close in H1 2027.

Following the phased closure of retail operations, HSBC plans to consolidate its corporate and institutional banking, asset management and private banking businesses in Australia into The Hongkong and Shanghai Banking Corporation Sydney branch, simplifying HSBC's entity footprint.