HSBC Exit From Retail Banking in France Progresses; Warns of Pretax Loss on Sale
June 18 2021 - 10:26AM
Dow Jones News
By Sabela Ojea
HSBC Holdings PLC said Friday that it has signed a memorandum of
understanding for the potential sale of its retail banking business
in France, which is expected to bring a pretax loss on sale of
around $2.3 billion.
The U.K. lender said the potential sale to My Money Group, its
subsidiary Banque des Caraibes SA and My Money Bank--which is
expected to complete in the first half of 2023--would also bring an
additional impairment charge of $700 million.
The agreement also includes the sale of the Credit Commercial de
France brand and, subject to satisfaction of several conditions,
HSBC's 100% ownership interest in HSBC SFH and its 3% ownership
interest in Credit Logement, it said, adding that it doesn't
include HSBC's life insurance or asset management manufacturing
businesses.
HSBC said the signing of this memorandum will enable it to focus
its business in Continental Europe and to continue accelerating the
transformation of its European wholesale banking franchise.
Regarding the employees affected by the exit, the bank said that
around 3,900 HSBC employees are expected to be transferred with the
business.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
June 18, 2021 10:18 ET (14:18 GMT)
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