[Asia Economy Reporter Yujin Cho] HSBC, which is strengthening its business in Asia, has decided to withdraw from the U.S. retail banking market, the Wall Street Journal (WSJ) reported on the 26th (local time).
HSBC, a major European bank, announced that it will exit the U.S. retail banking business to streamline unprofitable operations and focus on the Asian market.
HSBC plans to sell 90 of its 148 branches in the U.S. and reduce the remaining branches to 30-45.
About 20 branches will be converted into wealth management centers to provide financial services for high-net-worth clients, HSBC explained.
Accordingly, HSBC plans to stop providing financial services to customers with balances under $75,000.
HSBC stated that it has agreed to transfer its retail banking business to Citizens Bank of Citizens Financial Group and Cathay Bank under Cathay General Bancorp.
However, HSBC will continue to invest in international wholesale banking in the U.S.
Noel Quinn, CEO of HSBC, said, "The U.S. retail banking business is a good business but has not achieved a competitive scale," adding, "We will focus on our strengths serving corporate and high-net-worth clients."
Additionally, HSBC is negotiating the sale of its low-profit retail banking business in France.
In February, HSBC announced plans to invest $6 billion in the Asia region to strengthen competitiveness in asset management and commercial banking markets.
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