2023 ended with HSBC completing the sale of its Canada-based unit to RBC and 2024 kicks off with the conclusion of the sale of HSBC’s French retail banking operation.
HSBC has now completed the French deal with CCF, a subsidiary of My Money Group.
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All necessary regulatory approvals were obtained and the transaction completed on 1 January 2024.
Noel Quinn, HSBC Group CEO said “I am pleased to announce the completion of the sale of HSBC‘s Retail Banking activities in France. This represents an important milestone in our strategic vision for Europe. I am delighted with this positive start to 2024. Our team in Europe will continue with the aim of becoming the leading international wholesale bank in Europe, complemented by a targeted wealth and private banking business.”
HSBC agreed new terms for the sale of its French retail division to Cerberus-backed My Money Group last June.
Cerberus will invest around €225m (£192m) into the business. HSBC will retain a €7.0bn portfolio of loans which were originally to be transferred.
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By GlobalDataHSBC will take a €100m hit from the costs of retaining the loans.
HSBC will also invest in My Money’s holding company in exchange for a profit participation arrangement.
The transaction will lead to a pre-tax loss on sale of up to $2.7bn for HSBC, up from $2.3bn when the deal was first announced. The Canadian and French deals are consistent with HSBC’s ongoing policy to focus its efforts on Asian markets.
In May 2021, HSBC announced plans to pull the plug on its US retail banking business. And in 2022, it agreed a deal to sell its branch operations in Greece to local peer Pancreta Bank for an undisclosed sum.
