London and Hong-Kong listed bank HSBC announced new terms for the sale of its French retail banking business.
HSBC said that the new terms might allow for the sale to Promontoria MMB SAS (My Money Group) and its subsidiary Banque des Caraïbes SA to proceed. The transaction, first announced in June 2021 has been in limbo after stalling on regulatory capital concerns.
In this latest development, HSBC said the indirect shareholder of My Money Group will contribute €225 million of capital to My Money Group. Regulators had highlighted concerns about the capital levels of the combined new entity.
HSBC also said that it will retain a portfolio of home loans in France worth around €7 billion. These had originally been earmarked as part of the deal, and HSBC said it may still look to sell these loans at a future date.
The company is looking to pivot more towards a number of Asian markets, and has triggered planned sales of its businesses in Greece, Russia and Canada. The company earlier this week announced plans to wind down its wealth and personal banking business in New Zealand. https://www.fstech.co.uk/fst/HSBC_Shutters_New_Zealand_Wealth_Personal_Banking_Unit.php
Elsewhere earlier this week, HSBC at London Tech Week announced the launch of a new unit dubbed HSBC Innovation Banking. This business, which includes the former Silicon Valley Bank UK (SVB UK), as well as newly formed innovation teams in the US, Israel and Hong Kong, will “deliver a globally-connected, specialised banking proposition to support a broad range of innovation businesses and their investors”.
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