HSBC Holdings PLC - London-based blue-chip bank - Signs a memorandum of understanding for the potential sale of its retail banking business in France to private equity firm Cerberus Capital Management. The potential sale includes HSBC Continental Europe's French retail banking business, the Credit Commercial de France brand and, subject to certain conditions, HBCE's 100% ownership interest in HSBC SFH and its 3% ownership interest in Credit Logement.
The deal will bring an end to a more than 18-months long sales process for the HSBC unit. The bank is aiming to cut its gross risk-weighted assets by more than USD100 billion.
HSBC's French retail banking business consists of 244 branches, serving around 800,000 customers and has customer deposits of USD23.1 billion.
"The signing of an MOU for the potential sale of our French retail banking business represents a significant step in progressing the actions we announced during our strategic update earlier this year," comments Chief Executive Noel Quinn.
"It will enable us to dramatically simplify our business in continental Europe and allow us to accelerate the transformation of our European wholesale banking franchise. We are committed to remaining as a leading international wholesale bank in continental Europe."
The potential sale is expected to complete in the first half of 2023, HSBC says.
HSBC already has announced plans to exit the retail and small business banking market in the US, in line with its strategy to refocus on corporate and investment banking in Asia.
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By Will Paige; willpaige@alliancenews.com
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HSBC Holdings (HSBA)