The portfolio includes New Zealand residential mortgages, and Australian and New Zealand property finance loan assets.
AMP has been unhappy with the amount of capital required to support the business.
The four-year-old operation used the Internet and telephone banking as distribution channels and had no branches in New Zealand. It employed about 70 staff.
HSBC will acquire AMP Banking's A$1.6 billion residential mortgage portfolio in New Zealand and, subject to customer consent, take on AMP Banking's A$355 million New Zealand retail deposit portfolio.
AMP Banking said in a statement it will enter into management and funding arrangements with HSBC over a further A$135 million of mortgages.
GE Commercial Finance will acquire A$1.25 billion in property finance loan assets from AMP Bank and AMP Finance in Australia and New Zealand.
AMP's New Zealand customers and advisers will have access to banking products through distribution agreements with HSBC and GE.
AMP Banking is now focusing on providing retail deposits and mortgage products in Australia.
AMP chief executive officer Andrew Mohl said the transfers are expected to be completed by the end of the first half of June, subject to regulatory approval and contractual obligations. The final purchase prices would depend on a number of factors, including account balances at the date of completion.
In November, AMP said it wanted to exit its loss-making local banking operations.
AMP has already sold its Australian and New Zealand credit card portfolio to American Express, and in March it proposed the transfer of AMP's UK banking portfolio to Newcastle Building Society.
Discussions continued in relation to the proposed divestment of approximately A$490 million in rural property and other property finance loans retained by AMP Bank and AMP Finance.
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