HSBC will exit mass market retail banking business in the US, closing most of its branches and repurposing others towards international banking and wealth management clients. It will also retain its US international wholesale banking franchise, according to a statement on the lender's website.
Europe’s largest lender by assets has entered into sales agreements for certain parts of its US business with Citizens Bank and Cathay Bank. These transactions are pending regulatory approval and are expected to close by the first quarter of 2022, HSBC said.
It expects to incur $100 million of pre-tax costs in connection with these transactions.
They are good businesses, but we lacked the scale to compete
“They are good businesses, but we lacked the scale to compete,” Noel Quinn, group chief executive of HSBC, said.
“Our continued presence in the US is key to our international network and an important contributor to our growth plans. This next chapter of HSBC’s presence in the US will see the team focus on our competitive strengths, connecting our global wholesale and wealth management clients to other markets around the world.”
Lenders globally are benefiting from improved operating conditions as businesses stabilise and economies around the world shake off the pandemic-driven slowdown. The International Monetary Fund upgraded its global economic forecast in April on a better-than-expected recovery in some developed economies. The global economy is now forecast to expand 6 per cent in 2021 after tipping into its worst recession since the 1930s last year.
HSBC will exit 90 branches out of its current US network of 148 and retain a small network of physical locations in existing markets, which will be repurposed into 25 international wealth centres to serve high-net-worth customers. The remaining branches, numbering between 35 and 40, will be shut down, according to the website.
The lender also said it will exit from personal, advance and certain premier banking customers (those with balances below $75,000) as well as retail business banking customers (small businesses with a turnover of $5m and below).
“Today’s announcement is an important step towards becoming a more focused, simpler and sustainably profitable organisation,” Michael Roberts, chief executive, US and Americas at HSBC, said.
Citizens Bank has agreed to acquire HSBC’s 80 East Coast branches as well as its online bank portfolio, including about 800,000 customers with $9.2 billion in deposits and $2.2bn of outstanding loans as at March 31, 2021. Some 80 per cent of these are home loans, Citizens Bank said.
The 80 branch purchases includes 66 in New York, nine in Washington DC and five in Florida. The branches will operate as HSBC branches until closing and will be rebranded as Citizens branches upon closing of the transaction, which is expected to be in the first quarter of next year, the US bank said in a statement on its website.
“With a sizeable customer base and a solid deposit franchise, this acquisition will serve as a springboard for our consumer national expansion strategy," Bruce Van Saun, chairman and chief executive of Citizens Bank, said.
Meanwhile, Cathay Bank has agreed to purchase HSBC’s 10 West Coast branches, including about 50,000 customers with $1bn in deposits and $800m of outstanding loans as at March 31, 2021. All of the branches being acquired are in California, Cathay Bank said. Financial terms were not disclosed, but Cathay Bank said it expects the deal to have a positive impact on earnings next year, following the deal's closure in the first quarter.
HSBC announced earlier this year that it was exploring strategic options with respect to its US retail franchise, including organic and inorganic options to improve its profitability.
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
Most wanted allegations
- Benjamin Macann, 32: involvement in cocaine smuggling gang.
- Jack Mayle, 30: sold drugs from a phone line called the Flavour Quest.
- Callum Halpin, 27: over the 2018 murder of a rival drug dealer.
- Asim Naveed, 29: accused of being the leader of a gang that imported cocaine.
- Calvin Parris, 32: accused of buying cocaine from Naveed and selling it on.
- John James Jones, 31: allegedly stabbed two people causing serious injuries.
- Callum Michael Allan, 23: alleged drug dealing and assaulting an emergency worker.
- Dean Garforth, 29: part of a crime gang that sold drugs and guns.
- Joshua Dillon Hendry, 30: accused of trafficking heroin and crack cocain.
- Mark Francis Roberts, 28: grievous bodily harm after a bungled attempt to steal a £60,000 watch.
- James ‘Jamie’ Stevenson, 56: for arson and over the seizure of a tonne of cocaine.
- Nana Oppong, 41: shot a man eight times in a suspected gangland reprisal attack.
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
U19 WORLD CUP, WEST INDIES
UAE group fixtures (all in St Kitts)
Saturday 15 January: v Canada
Thursday 20 January: v England
Saturday 22 January: v Bangladesh
UAE squad
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly, Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya Shetty, Kai Smith
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE currency: the story behind the money in your pockets
The years Ramadan fell in May
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
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