LONDON (Alliance News) - HSBC Holdings PLC Tuesday said its Swiss private banking unit has agreed to sell a portfolio of its private banking assets in Switzerland to a subsidiary of LGT Group, the private banking and asset management group fully controlled by the Liechtenstein princely family, as the bank holding company looks to concentrate its growth on fewer markets.
HSBC is currently working towards concentrating the private banking unit's focus on areas and markets where wealth is growing fastest. HSBC Private Bank (Suisse) SA had started in 158 countries but is working its way down to handling 60 or 70. The assets it has agreed to sell represented USD12.5 billion in assets under management at the end of 2013.
The deal, which is subject to regulatory and other approvals, is expected to complete in the final quarter of 2014.
HSBC said that it remains "fully committed" to Switzerland as a key international centre for its private banking business and called it a "priority market" for the group.
In a separate statement, LGT said the portfolio, purchased by LGT Bank (Switzerland) Ltd, is made up of high-net-worth and ultra-high net worth clients across a number of countries, adding that it is a profitable portfolio. It said that the assets to be acquired have undergone "rigorous tax and general compliance procedures".
LGT is paying for the portfolio in cash, though neither side disclosed the transaction price.
HSBC shares were Tuesday quoted at 606.40 pence, unchanged on the day.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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