HSBC has sold its US retail banking network, effectively bringing to a close its struggling North American business after a 40-year attempt to run a full-service bank in the country, Report informs, citing the foreign press.
Europe’s largest lender first considered disposal of its consistently lossmaking American division late last year as part of the bank’s efforts to make deep cost savings of about $4.5bn and cut 35,000 jobs.
HSBC said it had sold 80 of its 148 branches on the east coast to Citizens Bank, which has also acquired $9.2bn of deposits and $2.2bn of outstanding loans. Ten branches on the west coast have been purchased by Cathay Bank, which has taken over $1bn of deposits and $800m of loans. The remaining branches will be wound down.
HSBC said it would not generate a “significant gain or loss” from the deals with Citizens Bank and Cathay Bank, other than incurring $100m in costs on the transaction.