HSBC sells stake in Korean insurer
Exit part of bank's three-year global plans to reduce, revive and refocus operations
HSBC said it sold an insurance stake in South Korea.
The banking giant said its subsidiary HSBC Insurance (Asia-Pacific) had agreed to sell its 50 per cent less one share in Hana HSBC Life Insurance to Hana Financial Group.
The lender did not disclose the sale price but at the end of last year, Hana HSBC Life had gross assets of about US$2.47 billion.
The transaction, which was expected to be completed as early as May 10, was in keeping with HSBC's group strategy, the lender said. The sale is part of a three-year revival plan by HSBC chief executive Stuart Gulliver to reduce costs, raise returns and refocus on profitable areas.
Gulliver wants to cut US$3.5 billion in annual costs and make the group more focused, and has been unwinding many deals and exiting countries and businesses where it is unprofitable or lacks critical mass.
HSBC remained committed to the Korean market and continued to invest in developing its Korean Global Banking and Markets business, the investment banking arm, HSBC said.