HSBC fails in US market and sells loss-making 90 American branches network

HSBC has sold 80 retail branches network in America to Citizens bank and 10 others to Cathay Bank. There also more than $10bn  of deposits and  $3bn of loans.

The HSBC US network has been consistently loss-making . Noel Quinn, HSBC CEO, is on a drive to  Slash costs of $4.5bnand 35, 000 jobs after its 40-year-old attempt to crack the US market. Quinn said: “deals on the branches won’t lead to either a significant loss or gain and lacked the scale to compete in the US.”

HSBC in Hong Kong reported $5.8bn of profit in the first quarter alone, an 80 per cent leap that showed the banks fresh confidence in the economy post-pandemic.

 Europe’s largest lender  first considered a disposal of its American division late last year after consistently making large losses.