Daily Management Review

HSBC Could Exit U.S. Retail Banking Sector


Would transformational steps in HSBC’s U.S. business lead to a total exit from banking sector in the country?

HSBC Holdings Plc is looking into the options of completely coming out of “retail banking in the United States”. This is being considered after the bank narrowed down on options for improving its performance in North America where it is “struggling”.
In the coming weeks, the senior management of the bank could come up with further plans before the board, reported Financial Times. However, HSBC did not agree to comment on the same report of FT.
However, Reuters added:
“HSBC said last month it planned to reduce annual costs to below $31 billion by 2022, a more ambitious target than it set out in February and well below the operating expenses of $42.3 billion it reported in 2019”.
Moreover, the bank has further mentioned about accelerating transformation of its “U.S. business” since there it has had a long struggle competing with “much bigger players”.