HSBC Withdraws from Retail Banking in the US

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] European-based major bank HSBC is reportedly planning to withdraw from the U.S. retail banking market, CNBC reported on the 23rd (local time).

According to the report, HSBC plans to sell or close the remaining 150 branches following the closure of 80 U.S. retail banking branches last year.

CNBC reported that this withdrawal from the U.S. consumer finance market is part of a strategy by Noel Quinn, HSBC's CEO, to cut costs, increase fee income by eliminating unprofitable businesses, and focus on the Asian market.

In this regard, HSBC announced on the same day that it plans to invest $6 billion in the Asian region to strengthen its competitiveness in asset management and commercial banking markets.

Although HSBC is a European bank headquartered in the United Kingdom, most of its revenue comes from Asian regions such as China and Hong Kong.

Meanwhile, HSBC announced that its pre-tax profit last year was $8.78 billion, a 34% decrease compared to the previous year.