HSBC Shuttering US Retail Business Banking Unit
(26 May 2021 – United States) HSBC has recently unveiled its plans for United States (US) ‘mass market’ retail business banking closures to focus on banking and wealth management services for global high net-worth clients (HNWC).
Citizens Bank has agreed to acquire HSBC’s east coast domestic retail business banking units, while Cathay Bank has agreed to acquire HSBC’s west coast units.
The east coast consists of 80 branches and nearly 800,000 customer relationships with US$9.2 billion in deposits and US$2.2 billion of outstanding loans. Similarly, the west coast consists of 10 branches with US$1 billion in deposits and US$800 million of outstanding loans.
“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” commented HSBC Group Chief Executive, Noel Quinn
“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” he also added
“Today’s announcement is an important step towards becoming a more focused, simpler and sustainably profitable organisation” commented HSBC US and Americas CEO, Michael Roberts
“A strong, internationally connected US business is an important part of HSBC’s value proposition, and we are excited to be focusing the US business in areas of competitive strength. At the same time, I am very pleased that we were able to execute this strategic repositioning at pace. It was also important for us to find buyers who would be a good fit for our customers and employees” he also added