On Wednesday, HSBC broke the news that it will be exiting the retail and small business banking market in the United States, in line with its strategy to shift focus onto corporate and investment banking in Asia.
In a statement, HSBC said it intends to “focus on the banking and wealth management needs of globally connected affluent and high net worth clients”.
The bank, headquartered in London, said that of its 148 US branches, 90 will be sold, including to Citizens Bank and Cathay General Bancorp.
HSBC said it plans to turn around 20 locations into international centres dedicated to high net worth individuals, and gradually wind down the remaining 40 branches.
Noel Quinn, HSBC Group’s chief executive, said that the US is “good business” but that the banking giant “lacked the scale to compete”.
HSBC had announced earlier this year that it intended to restructure its US retail and small business operations.
Dollar and crypto surge following Trump’s presidential win
Meanwhile, the financial sector is bracing for potential economic upheaval due to Trump’s trade and fiscal policies
What does Donald Trump’s return to the White House mean for business?
The new President-elect has promised to protect domestic manufacturers and cut taxes on companies
Lower than expected fares drive Ryanair profits down by 18%
The airline seeks to see growth of 300 million passengers over the next decade