HSBC Holdings yesterday agreed to sell its loss-making Italian private banking operations for 10.8 million euros (HK$95.5 million) to investment bank Banca Profilo.
The bank would sell its Italian private bank, Societa di Gestione del Risparmio, its custodial services unit, private client funds, and assets of the bank's commercial lending unit in Italy, subject to regulatory approval from Banca d'Italia.
About 866 million euros of client funds - including 582 million euros of assets under management - and 172 million euros of client lending would be transferred to Banca Profilo.
However, analysts said yesterday the move did not signal the lender intended to scale back its private banking business.
Merrill Lynch head of banking Keith Irving said: 'The sale price is only around 10 million euros so you can imagine how tiny this transaction is. I really don't think they are trying to contract their private banking operations at all.'
HSBC Italy chief executive Alessandro Baroni said it was selling its private banking operation because it was unable to generate economies of scale.