The self-proclaimed ‘The World’s Local Bank’ HSBC, a British multinational bank is contemplating an exit from retail banking in the US after struggling to boost their North American business. The sources stated senior management of the British bank is eager to enter more profitable Asian markets and going to present the idea to the board members in the upcoming weeks.
HSBC has faced several backlashes in the last few months regarding the bank announcement in February about the slashing of 35,000 jobs, $4.5 billion in costs, and $100 billion of risk-weighted assets by radically shrinking its US and European business. The pandemic has also struck the British bank severely after the American division endured a pre-tax loss of $518 million in the first three quarters of this year.
The company suffered massive losses in the last two years, taking a loss of $279m 2019 and $182m in 2018 respectively. Although the sources deny there would be a complete exit from North America as they consider it as a significant market place especially their investment bank division. HSBC has declined to comment about the situation, but the bank has to act swiftly and improve to restore the North American business to even have a small presence to sustain its division in America.