National Australia Bank (NAB) is reportedly considering a renewed bid to acquire HSBC’s Australian retail deposit book, a move that follows earlier efforts to purchase part of the London-based bank’s local operations. This potential transaction, currently in the due diligence phase, focuses on HSBC’s deposit liabilities rather than its loan portfolio.

HSBC made headlines in July when it sold its $36 billion Australian home and personal loan portfolio to investment firm Blackstone. The deal also involved Pepper Money taking over management of the loan assets. Despite this significant sale, HSBC continues to seek buyers for the remainder of its Australian retail business, primarily the deposit book segment.

Sources indicate that NAB submitted a non-conforming offer last year for the deposit portfolio only, refraining from bidding on the loan book. The deposit base is viewed as particularly attractive due to NAB’s existing need to bolster its deposit funding. In 2022, NAB expanded its retail banking footprint by acquiring Citi’s Australian consumer business for $1.2 billion. Meanwhile, Citi has reportedly been assisting HSBC in marketing the retail deposit assets.

The divestment of Australian retail banking operations is part of HSBC’s broader global refocusing strategy, which emphasizes reinforcing positions in core markets such as Hong Kong and the United Kingdom, alongside a stronger concentration on Asian businesses. This strategic shift has led HSBC to shed a series of non-core assets in recent years, including the sale of its U.S. retail banking division in 2021, followed by the disposal of Canadian operations to the Royal Bank of Canada in 2022.

HSBC maintains its commitment to the Australian market through ongoing investments in its corporate and institutional banking, private banking, and asset management sectors, as stated earlier this year. The anticipated sale of its retail deposit book would, however, mark another significant reduction of its presence in Australia’s consumer banking landscape.