HSBC announces plans to exit US retail banking sector

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.