Britain based financial services provider and investment bank HSBC Holding Plc. (LON: HSBC) has announced that it will be closing down its retail banking business in the United States citing the business has only been making losses after losses.
HSBC says it will rather shift its focus in Asia which serves as its biggest market base. The bank says it will be selling some parts of the retail banking business in U.S and wind down what will remain of the retail business.
In the public issued statement regarding the matter, HSBC says it will be exiting retail banking market in the U.S for most individual and small business customers but it will leave behind a small physical presence in the country to serve as its international affluent for its wealthy clients.
“They are good businesses, but we lacked the scale to compete,” said the bank’s CEO, Noel Quinn.
The bank is also seeking to sell its French banking operations in a larger plan of cutting down its market share in some markets. HSBC has already entered into a deal with private equity firm Cerberus regarding sale of the French business.