As a part of restructuring exercise, HSBC is planning to divest its Brazilian unit to optimize its global network and reduce complexity, goals it had sketched during its investor update on 9 June.
This will enable Bradesco to bring its asset gap on par with larger rivals such as Itaú and state-controlled banks Banco do Brasil SA (BBAS3.SA) and Caixa Econômica Federal. Subject to regulatory approvals, the sale is expected to be completed by June 2016.
The bank is also considering a sale of its Turkish unit in view of sliding second-quarter net profit that fell by around 4% to $4.36bn from $4.54bn in the previous year.
This all ties up with HSBC CEO Stuart Gulliver’s strategy to pull out of countries where it is not making enough money. A push was given to this with the announcement of proposed 50,000 job cuts.
Speaking about the transaction, Gulliver said: "We announced at our Investor Update on 9 June that we were targeting a series of actions to generate increased value for shareholders. I am pleased to be able to announce today a transaction which achieves both a solid financial outcome and swift delivery of one of our stated actions."
