* HSBC ( HSBC ) to wind down remaining Australian retail banking

business over 18 months

* Deal expected to close in 1H 2027, subject to regulatory

approvals

* HSBC ( HSBC ) to focus on corporate, institutional banking

franchise in Australia, NZ

(Adds details and background throughout)

July 31 (Reuters) - HSBC ( HSBC ) said on Friday

it would sell its A$36 billion ($25.30 billion) Australian home

and personal loan portfolio to investment giant Blackstone

, marking its phased exit from retail banking in the

country.

The portfolio will be acquired by Virgo BidCo, wholly owned

by funds managed by affiliates of Blackstone, in a deal expected

to close in the first half of 2027. The final purchase price

will be adjusted before completion to reflect factors including

new loan originations.

HSBC ( HSBC ) said the sale followed a strategic review as part of

the group's efforts to simplify operations under CEO Georges

Elhedery. The remainder of HSBC Australia's retail business

would be wound down in phases over the next 18 months.

Since taking over in September 2024, Elhedery has

reorganised the bank along East-West lines, exited sub-scale

investment banking businesses in the U.S. and Europe, and

reduced senior management ranks.

The bank said it would retain and grow its corporate and

institutional banking, private banking and asset management

operations in Australia following the retail exit.

In a separate statement, Blackstone said the transaction

underscored its long-term commitment to Australia, where it has

invested for nearly two decades, and reflected its interest in

the country's housing market.

HSBC ( HSBC ) expects the disposal to result in an immaterial loss of

less than $100 million by the first half of 2027. It also

expects to incur about $300 million in restructuring costs and

write-offs linked to the wind-down of the retail business.

After this, it expects to recycle about $300 million of

foreign currency translation reserve losses to its income

statement, with no incremental impact on common equity tier 1

capital ratio - one of the key metrics for a bank's financial

strength and capital adequacy.

($1 = 1.4231 Australian dollars)