International investment bank HSBC is reportedly considering a complete exit from its retail banking operations in the US.
According to Financial Times, the senior management of the bank intends to present the plan to the board of directors in a few weeks. The decision follows the narrowing of options to boost the performance of its North America business.
Last month, the bank announced its plans to reduce annual costs to less than $31bn by 2022. In 2019, it reported operating expenses of $42.3bn.
Also, the bank plans to advance transformation of its US business.
Established as the Hongkong and Shanghai Banking Corporation (HSBC) in 1865, the bank’s exit from the US is expected to strengthen its footprint in Asia.
The division posted a pretax loss of $518m in the first three quarters of 2020, after recording losses of $279m last year and $182m in 2018.
Following the close of 80 branches in 2020, the company currently runs around 150 branches on the East and West coasts of America.
Furthermore, the bank is considering other options to move to a digital-only model focused on international clients.
Last month, HSBC announced that it intends to submit an application for the delisting of its ordinary shares from Euronext Paris, after review of the trading volumes, costs and administrative requirements related to its Euronext Paris listing.
The bank’s listings on the London, Hong Kong, New York and Bermuda Stock Exchanges would not be impacted by any delisting from Euronext Paris
