HSBC plans to divest its Canadian operations

WASHINGTON (Agefi-Dow Jones)–British bank HSBC is considering divesting its Canadian business as part of its North American divestment as the group refocuses on Asia.

HSBC said on Tuesday it began reviewing its options for HSBC Bank Canada, including a sale. HSBC owns 100% of its Canadian subsidiary, which includes retail banking, commercial banking and investment banking and which presents itself as the seventh largest bank in Canada.

“HSBC regularly reviews its activities in all of its markets,” the bank said in a statement. “We are currently reviewing our strategic options for our wholly owned subsidiary in Canada.” This move was originally reported on Tuesday by Sky News.

The British bank announced last year that it would stop serving individuals and small businesses in the United States to refocus on wealth management and international banking services, particularly in Asia where it makes a significant share of its profits. It has also scaled back on other markets, notably by selling its retail bank in France.

HSBC’s largest shareholder, Chinese insurer Ping An, has for some time been pressuring the group to put more emphasis on its Asian business.

The action gained more than 3% on Tuesday in London, in a context of general progress in banking stocks.

-Josh Mitchell, The Wall Street Journal

(French version Emilie Palvadeau) ed: LBO

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October 04, 2022 09:23 ET (13:23 GMT)

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