Reports have linked HSBC with a complete exit from retail banking operations in the U.S., according to Financial Times. Closing the retail operations will allow the bank to allocate more resources away from the U.S. in favor of more profitable businesses in Asia.
- HSBC management is likely to recommend trimming the investment bank client roster to focus on international clients with Asian and Middle-Eastern links.
- HSBC is yet to make the final decision on exiting the U.S. retail banking and could adopt another option of a digital-only model focused on global clients from the Chinese and Indian diaspora
- The bank is not planning a full exit from the U.S as it believes America is an essential marketplace for its investment division and seeks to grow the wealth management unit.
- The bank’s senior management is expected to present a plan to the board in the coming weeks.
- HSBC’S executives called for drastic measures due to the impact of the pandemic and ultra-low interest rates.
- HSBC’s North American retail operations have been running into losses, including $182 million in 2018, $279 million in 2019, and $518 million in the first three quarters of this year.
- This year, HSBC closed 80 branches, and in February, it announced $4.5 billion cost savings that included 35,000 job cuts.
HSBC stock is currently declining. HSBC: NYSE is down 1.71% on premarket.