Holdings PLC will exit its retail and small business banking operations in the United States as the bank focuses on wealth management and international banking services, particularly in Asia.
The banking giant announced Thursday night that it would be leaving 90 of its 148 branches in the United States through a series of transactions. HSBC has reached agreements to sell part of its business to Citizens Financial Group Inc. of
Cathay Bank. It also plans to close around 35 to 40 branches.
As such, the bank will no longer serve bank customers with balances below $ 75,000. It will also cut ties with all of its retail business customers, including small businesses, he said.
“This next chapter of HSBC’s presence in the United States will see the team focus on our competitive strengths, connecting our global wholesale and wealth management clients to other markets around the world,” said the director. HSBC Group General Noel Quinn in a prepared address. He said the bank’s mass retail operations in the United States “are good businesses, but we lack the size to be competitive.
The London-based lender, which makes most of its profits in Hong Kong and mainland China, has been in the process of redesigning much for more than a year to refocus its operations in Asia. In February, the bank said it plans to sell its unprofitable retail operations in the United States and inject around $ 6 billion of investment in Asia over the next five years.
HSBC is also in talks to sell its unprofitable French retail bank.
The bank said it had agreed to sell its East Coast mass banking and retail banking business, which includes 80 branches and around 800,000 customer accounts, as well as its online banking portfolio to Citizen Bank. Those accounts had about $ 9.2 billion in deposits and $ 2.2 billion in loans outstanding at the end of March.
HSBC’s west coast retail banking operations, which include 10 branches and approximately 50,000 accounts receivable, would be sold to Cathay Bank.
The transactions, which are subject to regulatory approval, are expected to close in the first quarter of 2022. HSBC said it expects to incur around $ 100 million in pre-tax costs for the transactions.
Write to Kimberly Chin at [email protected]
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