Support The Moscow Times!

HSBC Sells Portion of Retail Unit

LONDON — HSBC Holdings, Europe's biggest bank, is to sell part of its Russian consumer banking business to Citigroup.

The sale of the business, whose assets are valued at about $10.7 million, will be closed in the third quarter of the year, the London-based bank said in a statement Tuesday. HSBC in April said it would close its retail and private-banking units in Russia to focus on corporate clients as domestic lenders gain market share.

State-run banks led by Sberbank and VTB Group are expanding their corporate and brokerage businesses, squeezing out international competitors as the Kremlin seeks to turn Moscow into a global financial center. Britain's Barclays, Spain's Banco Santander, Morgan Stanley of the U.S. and Sweden's Swedbank are among foreign competitors who have either quit or curtailed Russian retail operations since 2010.

HSBC did not put a price on the sale although a spokesman said the deal involved the sale of its retail loan and mortgage portfolios at four branches in Moscow and one in St. Petersburg.

"We're pleased with the outcome of this transaction, which is in line with our strategy of increasing our capital deployment discipline," said Brian Robertson, head of HSBC's European operations.

HSBC's new boss Stuart Gulliver in May unveiled a $3.5 billion cost-cutting overhaul that, among other things, will see it focus retail banking operations on its core markets such as Hong Kong and Britain.

(Bloomberg, Reuters)

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more