Japan HSBC Premier retail banking and wealth management head Gifford Nakajima said that the decision follows a global strategic review of its business, and means that a phased withdrawal of HSBC Premier service will be undertaken, in line with existing contractual obligations.
The UK-based bank will shut down six branches in Japan from 31 July 2012.
The recent decision will enable the bank to control costs and re-focus on its sprawling business.
In line with the draw down decision, the bank will not open new customer accounts, or offer any new investment products from 23 February 2012 and 8 March 2012, respectively.
According to the bank, its online banking will continue until 28 December 2012, although online sales of unit trusts and DCDs will end on 7 March 2012.
The bank has also assured that transfer of customer assets to another bank will be processed free of charge.
Bloomberg reported that the bank was looking for buyers of its Premier unit, which targets wealthy individuals in Japan. HSBC Premier came in force in 2008.
Last year, HSBC agreed to dispose banking operations in Costa Rica, El Salvador and Honduras to Colombia’s Banco Davivienda for $801m, to strengthen its position in Latin America markets.
