HSBC Is Considering Selling Some Business Units in Germany to Focus on Asia as It Further Exits From Europe

By Trisha Andrada

Apr 03, 2024 08:36 AM EDT

HSBC is reportedly considering selling various business units in Germany, particularly those dealing with wealth management, custody, and fund administration. The financial firm is currently listed in London and Hong Kong. 

HSBC Holdings Plc Bank Branches As Company Announces Plans To Eliminate 50,000 Jobs
An HSBC logo sits on display outside an HSBC Holdings Plc bank branch in London, U.K., on Tuesday, June 9, 2015. (Photo : Simon Dawson/Bloomberg via Getty Images)

HSBC Eyeing Possible Sales of Some Business Units in Germany

According to Bloomberg sources, HSBC is collaborating with advisers on a review. The sources also pointed out that the talks are in their early stages, which means there is no guarantee that it will result in a sale.

The insiders said the review would not affect HSBC's corporate banking and trading activities in Germany. The bank reported revenue of around $90 million in 2023 from its German private banking operations.

With an estimated €400 billion ($431 billion) in assets under management, HSBC's fund management business in Germany under the name Inka is among the largest in the industry. These fund management firms provide services such as accounting, financial reporting, and portfolio assessments to asset managers.

Read Also: Swiss Banking Giant UBS Launches New Share Buyback Program of up to $2 Billion

Germany Would Be the Latest in Its Departures From Several Countries in the Past Years

If the sales go through, it would be the latest in a string of HSBC's recent departures from a number of countries and business areas, including Canada and France.

With these departures, the bank is refocusing on its main Asian business, with the goal of serving German corporations with Asian operations, among others, South China Morning Post reported.

As governments and some private equity firms seek to sell their post-financial crisis investments, European banking mergers have gained new momentum this year. 

With the tailwind from increasing interest rates slowing, some lenders like HSBC streamlined their worldwide operations while others aggressively pursued acquisitions.

Read More: Citi Announces 430 Job Cuts Across New York Offices, Spanning Multiple Divisions

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