The British bank announced on Wednesday that it would close most of its retail banking offices in the country, reducing its current footprint from 148 branches to about 25. The remaining ones will become international wealth management centers.
While HSBC ( will remain in the United States, his team there will shift the focus of its retail business to “international banking and wealth management,” and specifically to the “needs of affluent and high net worth customers connected globally,” he said in a statement. the decision to retire was widely awaited. HSBC has repeatedly warned of the need to cut costs in recent years, especially in the United States, where it has long struggled to gain a foothold among everyday consumers. “We are pleased to announce the sale of the national mass market of our retail banking business in the US. They are good business, but we lacked the scale to compete,” CEO Noel Quinn said in the statement. )
“The next chapter of HSBC’s presence in the United States will see the team focus on our competitive strengths, connecting our wholesale customers and wealth management to other markets around the world.”
The London-based lender now plans to sell pieces of its business to other US players.
He said Wednesday that Citizens Bank, for example, based in Rhode Island, had agreed to buy its retail unit on the East Coast, as well as an online portfolio, spanning approximately 800,000 customers and 80 branches. , Cathay Bank, billed as the “oldest operating bank” in the country founded by American Chinese, plans to buy HSBC’s retail operations, which includes 10 branches and approximately 50,000 customers.
Both offers are pending regulatory approval.
HSBC, which earns most of its money in Asia, has been moving more and more resources to the region lately.
The bank told investors earlier this year that it planned to “intensify” its investments by about $ 6 billion, with a focus on China, Southeast Asia and India as “key drivers” of the its future growth.
The company wants to establish its presence in mainland China, defend its leading position in Hong Kong and establish Singapore as a wealth management center. And it remains bullish in India, which produced $ 1 billion in profit for the bank last year.
HSBC is also relocating key personnel. Last month, he said he would move four of his top executives to Hong Kong later this year, although a spokesman confirmed that both Quinn and chief financial officer Ewen Stevenson would stay in London.