HSBC Exits US Retail Banking Business
Fazzaco learned that HSBC Holdings Plc has exited its US domestic mass retail banking business by selling a large part of its business to local lenders and retaining a small network of physical locations in existing markets.
As a result, HSBC Bank USA, N.A. (HBUS) will reposition its US Wealth and Personal Banking business to focus on the banking and wealth management needs of globally connected affluent and high net worth clients.
Noel Quinn, Group Chief Executive of HSBC, said: "We are pleased to announce the sale of the domestic mass market of our US retail banking business. They are good businesses, but we lacked the scale to compete. Our continued presence in the US is key to our international network and an important contributor to our growth plans. 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."
Citizens Bank agreed to purchase the east coast retail business of HSBC that will include 80 branches and about 800,000 customers, and Cathay Bank the west coast business, which will include 10 branches and about 50,000 customers. HSBC is expecting to receive a pre-tax value of $100 million from those transactions.
HSBC will retain a network of 20 to 25 physical locations in the US and will transform them into international wealth centers.
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