HSBC mulls exit from US retail banking
HSBC is considering a total exit from retail banking in the US after narrowing the options for how to improve performance at its struggling North America business.
Senior management at HSBC aim to present the plan to the bank’s board in the coming weeks, as HSBC seeks to move resources from the US and toward a more profitable Asia, the Financial Times reported.
According to the FT, managers are likely to also recommend trimming HSBC’s investment bank client roster to focus on international clients, particularly those with Asian and Middle Eastern links.
HSBC declined to comment.
The bank is planning a coronavirus-induced overhaul of its business model, seeking to shift its main source of income from interest rate to fee-based businesses.
Europe’s biggest lender will also accelerate a sweeping cost-cutting programme, despite reporting better-than-expected results for the third quarter.
In a potentially seismic shift for the banking industry, HSBC also suggested that it could start charging for current accounts in markets including the UK, where they are currently free.