HSBC pulls out of US retail banking market
HSBC has confirmed plans to exit retail banking in the US as the London-based bank continues its strategy to focus further on growth in Asia.
Shares in the company dipped marginally on Thursday morning after it confirmed it will also exit the small business banking market in the US.
Europe’s largest lender first considered a disposal of the loss-making business last year and the move will aid the company in its plans to make multibillion-pound cost savings.
It said 90 of its banks are to be sold to Citizens Bank and Cathay General Bancorp.
They are good businesses, but we lacked the scale to compete
Meanwhile, it intends to turn about 20 locations into international centres dedicated to high net worth customers and will gradually shut down the remaining stores.
The group said it will not see a “significant gain or loss” from the sale of the bank to Citizens and Cathay, other than about 100 million dollars (£70.8 million) in transaction costs.
HSBC has already completed a restructuring of its US operations last year, in a move which shut around 80 banks.
Noel Quinn, the group’s chief executive, said: “They are good businesses, but we lacked the scale to compete.
“This next chapter of HSBC’s presence in the US will see the team focus on our competitive strengths, connecting our global wholesale and wealth management clients to other markets around the world.”