HSBC said to explore sale of some German units in further exit from Europe to focus on Asia

The lender is working with advisers on a business review, which is in an early stage and may not lead to a sale, according to people familiar with the plan

HSBCsold its Canadian business to Royal Bank of Canada last month; the sale of its French retail operations remains pending after almost three years

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A lion statue outside the HSBC Holdings Plc headquarters building in Hong Kong. Photo: Bloomberg

Published: 12:34pm, 3 Apr 2024

HSBC Holdings is exploring the sale of various business units in Germany including its wealth-management, custody and fund administration units, according to people familiar with the matter.

The London and Hong Kong-listed lender is working with advisers on a review, they said, asking not to be identified because the talks are private. The discussions are at an early stage and there is no certainty they will lead to a sale, they added.

The bank’s corporate-banking and trading activities in the country are not affected by the review, the people said.

A spokesperson for HSBC declined to comment.

The disposals would add to HSBC’s long list of exits from business activities and countries in recent years, including North America and its French retail operations. The exits are part of a move to sharpen its focus on its core Asian operations with the bank looking to cater to German corporates with operations in Asia for instance.

HSBC CEO Noel Quinn addresses shareholders during the bank’s annual general meeting in Birmingham, England, in May 2023. Photo: Chad Bray

The UK-based lender completed the sale of its Canadian business to Royal Bank of Canada on March 28 for a US$4.9 billion gain, unlocking “significant value” for the group, according to a stock exchange filing. The group expects to take a loss from the sale of its French retail banking assets, which has been delayed since mid-2021.