HSBC Reportedly Looking Into Divesting Canadian Operations

HSBC (NYSE: HSBC) said in a statement that it is currently reviewing strategies for its wholly-owned subsidiary in Canada, including a potential sale of a 100% stake.

“We are currently reviewing our strategic options with respect to our wholly owned subsidiary in Canada,” the company said in a statement. “HSBC regularly reviews its businesses in all its markets.”

According to a person familiar with the situation, the lender has directed investment bankers at JPMorgan Chase & Co. to feel out bids for HSBC Bank Canada.

The announcement comes amidst a contentious call by its largest shareholder, Ping An Insurance Group, to split the company. HSBC has pushed back against the Chinese insurer, claiming that there’s little merit in spinning out its Asian operations.

According to Bloomberg Intelligence, selling the Canadian unit could net roughly US$10 billion.

Despite being a minor percentage of HSBC’s overall business, Canada was the third largest contributor to the company’s commercial banking earnings in 2021, after only the United Kingdom and Hong Kong and ahead of markets such as mainland China, the United States, and India.

The British lender has been operating in Canada since 1981 and is currently the seventh largest bank in the country, with over 130 locations nationwide.

HSBC is in the midst of its own turnaround, which is focused on strengthening its position in Asia, particularly in wealth management, while eliminating operations that are no longer considered relevant. The bank has already sold assets in the United States, France, and Greece.

HSBC last traded at US$26.62 on the NYSE.


Information for this briefing was found via Financial Post. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

New Found Gold: The Strategic Maritime Resources Purchase

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Texas Adds HSBC to Energy Sanctions List

British multinational bank HSBC (LON: HSBA) has been added to Texas’ energy sanctions list, Comptroller...

Thursday, March 23, 2023, 04:03:00 PM

HSBC Found Not Liable for 2009 Al-Qaeda Bombing at CIA Base

A US appeals court earlier this week ruled that HSBC (NYSE: HSBC) cannot be held...

Saturday, September 10, 2022, 03:09:00 PM

Credit Suisse, HSBC, Others Fined Nearly $400M Over Foreign Currency Market Collusion

European Union regulators have issued fines for four major banks, after an investigation revealed they...

Friday, December 3, 2021, 10:21:00 AM

HSBC Completes $10B Sale of Canadian Unit to Royal Bank of Canada

HSBC Holdings (LON: HSBA) announced quietly late last week that it has completed the C$13.5...

Monday, April 1, 2024, 05:02:00 PM

SEC Fines HSBC, Scotia Capital For Using WhatsApp

The SEC has charged two major financial institutions, HSBC Securities Inc. and Scotia Capital Inc,...

Thursday, May 11, 2023, 10:10:34 AM