HSBC kicks off talks to sell its LatAm branches
HSBC is in talks to sell its operations in Colombia, Peru, Uruguay and Paraguay, as Europe’s biggest bank continues to retreat from countries where it is too small or it does not see strong enough growth.
HSBC has been quitting smaller markets and businesses to cut costs and streamline operations under new CEO Stuart Gulliver.
The London-based bank operates in 85 countries and Gulliver is trying to sharpen its focus on fast-growing Asian markets. It has struck about 27 deals in the past year to cut more than $60bn (£37.1bn) in risk-weighted assets from its balance sheet.
HSBC has 62 branches in the four Latin American countries it is leaving – 24 in Peru, 20 in Colombia, 11 in Uruguay and seven in Paraguay – out of more than 3,000 across the Americas. The businesses had assets of about $4.5bn.
It did not say who it was talking to or specify whether it was one firm or several.
HSBC sold its businesses in Costa Rica, El Salvador and Honduras for $800m to Colombia’s Banco Davivienda S.A. in January. Those businesses had 136 branches and assets of about $4.3bn. It also sold its retail banking operations in Chile last year.