Huseyin Ozkaya, HSBC’s London-based country chief, said following a strategic review, it’s clear that the strongest opportunity for HSBC in Russia lies in servicing corporate and institutional clients.
HSBC said that three of its four Moscow branches will close on 30 June, a branch in St Petersburg will remain open for a few months longer.
All HSBC credit cards will stop working on 31 May, and all debit cards on 30 June.
Russia’s banking sector is dominated by state-owned banks, which control around 60% of the system’s overall assets.
State-run banks led by OAO Sberbank and VTB Group are expanding their corporate and brokerage businesses, squeezing out international competitors as the Kremlin seeks to turn Moscow into a global financial centre.
Britain’s Barclays, Spain’s Banco Santander, Morgan Stanley of the US and Sweden’s Swedbank are among foreign competitors who have either quit or curtailed Russian retail operations since 2010.
