HSBC has played down rumours that it is planning to sell its UK banking arm, dismissing reports of the same as ‘speculation’.
The UK’s biggest bank by assets was responding to reports claiming it was to sell a 30% stake in its UK retail outfit.
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Antonio Simoes, UK head of HSBC, reassured staff that the rumours were groundless, saying: "We understand this could be unsettling for employees and want to confirm that this is speculation and nothing more.
"The UK is one of our two home markets, along with Hong Kong. Between them they make 40% to 50% of group profits in any given year."
Sceptics of the initial media reports had pointed out that a spin-off of its UK banking arm would put HSBC in competition with Lloyds and RBS’ offerings on the stock markets.
Lloyds and RBS are to sell off TSB and William and Glyn’s respectively to comply with EU regulation due to come into force in 2015, while Santander is to consider a potential floatation at the end of 2014 and OneSavings Bank is considering the same.
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By GlobalDataSimoes added: "We have seen encouraging growth forecasts for the UK recently. It would be unusual to consider a flotation of 30% of the business when we would benefit from that growth across 100% of the UK bank."
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