HSBC Sells HSBC Argentina to Argentina Largest Private Financial Group Grupo Financiero Galici for $550 Million, Sale of Business Will Result in $1 Billion Pre-Tax Loss, Remains Committed to Mexico & United States, HSBC Reviews Plan to Sell HSBC Germany Wealth Management, Custody & Fund Administration Business
10th April 2024 | Hong Kong
HSBC has announced to sell HSBC Argentina to Argentina largest private financial group Grupo Financiero Galici for $550 million, with the sale of HSBC Argentina business to result in $1 billion pre-tax loss. With the sale of HSBC Argentina (America region), HSBC remains committed to Mexico & United States. HSBC (9/4/24): “We’ve agreed to sell our banking operations in Argentina to Grupo Financiero Galicia – the largest private financial group in Argentina. The deal is worth US$550m, subject to certain price adjustments, and is expected to be completed within the next 12 months. As a result of the deal: 1) A US$1.0bn pre-tax loss on disposal will be recognised in 1Q24, 2) There will be an insignificant impact on the Group’s common equity tier 1 (CET1) ratio by closing 3) At closing, c.US$4.9bn of historical cumulative foreign currency translation reserve losses will be recognised in the income statement – these have already been recognised in capital and will have no impact on CET1 or tangible net asset value, 4) The transaction will be treated as a material notable item and excluded from the dividend payout calculation. In early April 2024, HSBC has been reported to be reviewing plan to sell HSBC Germany wealth management, custody & fund administration business. In 2024 January, HSBC completed the sale of HSBC retail banking in France to Crédit Commercial de France (CCF) on 1st January 2024, with HSBC to focus on becoming a leading international wholesale bank in Europe and targeted wealth & private banking business.
“ HSBC Sells HSBC Argentina to Argentina Largest Private Financial Group Grupo Financiero Galici for $550 Million, Sale of Business Will Result in $1 Billion Pre-Tax Loss, Remains Committed to Mexico & United States, HSBC Reviews Plan to Sell HSBC Germany Wealth Management, Custody & Fund Administration Business “
Noel Quinn, HSBC Group Chief Executive: “We are pleased to agree the sale of HSBC Argentina. This transaction is another important step in the execution of our strategy and enables us to focus our resources on higher value opportunities across our international network. HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network. Furthermore, given its size, it also generates substantial earnings volatility for the Group when its results are translated into US dollars. Galicia is better placed to invest in and grow the business. We remain committed to Mexico and the US, and to serving our international clients throughout our global network with our leading transaction banking capabilities.”
HSBC Reviews Plan to Sell HSBC Germany Wealth Management, Custody & Fund Administration Business, Completed Sale of Retail Banking in France to Crédit Commercial de France on 1st January 2024, HSBC to Focus on Becoming a Leading International Wholesale Bank in Europe and Targeted Wealth & Private Banking Business
6th April 2024 – HSBC has been reported to be reviewing plan to sell HSBC Germany wealth management, custody & fund administration business. In 2024 January, HSBC completed the sale of HSBC retail banking in France to Crédit Commercial de France (CCF) on 1st January 2024, with HSBC to focus on becoming a leading international wholesale bank in Europe and targeted wealth & private banking business. CCF Group: “The acquisition of HSBC Continental Europe’s retail banking activities in France was completed on 1 January 2024 and these are now run by CCF (Crédit Commercial de France). The acquisition perimeter also includes HSBC SFH, renamed CCF SFH. Following this transaction, My Money Group becomes CCF Group.” Noel Quinn, HSBC Group CEO: “I am pleased to announce the completion of the sale of HSBC‘s Retail Banking activities in France. This represents an important milestone in our strategic vision for Europe. I am delighted with this positive start to 2024 – our team in Europe will continue with the aim of becoming the leading international wholesale bank in Europe, complemented by a targeted Wealth and Private Banking business.” In late December 2023, Royal Bank of Canada (RBC) had received regulatory approval to buy HSBC Canada for $10.1 billion announced in 2022 (2022: HSBC gross assets of $94.6 billion). HSBC has been in Canada for over 40 years and has more than 130 branches and over 780,000 retail and commercial customers.
HSBC Completes Sale of Retail Banking in France to Crédit Commercial de France on 1st January 2024, HSBC to Focus on Becoming a Leading International Wholesale Bank in Europe and Targeted Wealth & Private Banking Business
3rd January 2024 – HSBC has completed the sale of HSBC retail banking in France to Crédit Commercial de France (CCF) on 1st January 2024, with HSBC to focus on becoming a leading international wholesale bank in Europe and targeted wealth & private banking business. CCF Group: “The acquisition of HSBC Continental Europe’s retail banking activities in France was completed on 1 January 2024 and these are now run by CCF (Crédit Commercial de France). The acquisition perimeter also includes HSBC SFH, renamed CCF SFH. Following this transaction, My Money Group becomes CCF Group.” Noel Quinn, HSBC Group CEO: “I am pleased to announce the completion of the sale of HSBC‘s Retail Banking activities in France. This represents an important milestone in our strategic vision for Europe. I am delighted with this positive start to 2024 – our team in Europe will continue with the aim of becoming the leading international wholesale bank in Europe, complemented by a targeted Wealth and Private Banking business.” In late December 2023, Royal Bank of Canada (RBC) had received regulatory approval to buy HSBC Canada for $10.1 billion announced in 2022 (2022: HSBC gross assets of $94.6 billion). HSBC has been in Canada for over 40 years and has more than 130 branches and over 780,000 retail and commercial customers.
Royal Bank of Canada Receives Regulatory Approval to Buy HSBC Canada for $10.1 Billion Announced in 2022, HSBC Gross Assets of $94.6 Billion & in Canada for More than 40 Years with 130 Branches & 780,000 Customers
27th December 2023 – Royal Bank of Canada (RBC) has received regulatory approval to buy HSBC Canada for $10.1 billion announced in 2022 (2022: HSBC gross assets of $94.6 billion). HSBC has been in Canada for over 40 years and has more than 130 branches and over 780,000 retail and commercial customers. RBC: “Royal Bank of Canada today welcomed the federal Minister of Finance’s approval to proceed with the acquisition of HSBC Bank Canada. With this approval received, RBC and HSBC Canada will work together to facilitate a smooth transition to RBC for HSBC Canada’s clients and employees, who will receive further information in the coming days regarding what they can expect as both banks work towards completing the transaction. The acquisition will strengthen RBC’s premium domestic business and position on the global stage.” HSBC: “The review considered HSBC Canada’s relatively low market share and the Group’s ability to invest in HSBC Canada’s expansion and growth in the context of opportunities in other markets, and concluded that the best course of action strategically for the HSBC Group and HSBC Canada was to sell the business. The transaction will unlock significant value for the HSBC Group.” More info below:
Dave McKay, President & CEO, RBC: “I want to thank the Department of Finance, OSFI, and the Competition Bureau for their diligent work in reviewing this important acquisition. The acquisition of HSBC Canada is good for the country and Canadians. Not only will this keep more of Canada’s financial sector under Canadian ownership, but it will also allow more Canadians to access the global economy by combining the strength and scale of RBC with the international banking capabilities and financial products that HSBC Canada is known for.”
Neil McLaughlin, Group Head, Personal & Commercial Banking, RBC: “By bringing the capabilities, international connections and exceptional talent of HSBC Canada to RBC, we are creating an enhanced banking experience for our clients, which includes new international products and innovative digital capabilities to help them achieve their financial goals. At the same time, HSBC Canada clients will gain access to RBC’s award-winning personal, commercial, wealth and capital markets offerings, while continuing to enjoy a wide range of international banking services.”
Noel Quinn, CEO of HSBC Group: “HSBC Canada is a high performing and profitable bank, with strong leadership and exceptional people. I am grateful to the whole team for their hard work in supporting our clients over many years. We decided to sell following a thorough review of the business, which assessed its relative market position within the Canadian market and its strategic fit within the HSBC portfolio, and concluded that there was a material value upside from selling the business.”
Royal Bank of Canada Receives Regulatory Approval to Buy HSBC Canada for $10.1 Billion Announced in 2022, HSBC Gross Assets of $94.6 Billion & in Canada for More than 40 Years with 130 Branches & 780,000 Customers
21st December 2023 – Royal Bank of Canada (TSX: RY) (NYSE: RY) (“RBC”) today welcomed the federal Minister of Finance’s approval to proceed with the acquisition of HSBC Bank Canada (“HSBC Canada”). With this approval received, RBC and HSBC Canada will work together to facilitate a smooth transition to RBC for HSBC Canada’s clients and employees, who will receive further information in the coming days regarding what they can expect as both banks work towards completing the transaction. The acquisition will strengthen RBC’s premium domestic business and position on the global stage.
RBC’s Commitments to Canadians – RBC today announced significant investments across Canada and particularly in British Columbia, where many HSBC Canada employees are located.
Growing Our Canadian Workforce
- Over the next five years, RBC will build out a Global Banking Hub in Vancouver, representing the bank’s commitment to making Vancouver a leading city for financial services. The hub will be supported with over 1,000 jobs across multiple disciplines including those with technology skills in digital, data science, and cyber; client-facing, multilingual advisors; fraud experts; risk managers; and client credit adjudication experts.
- RBC will increase its client operations and advice centre teams in Winnipeg, Manitoba, leading to the creation of 100 new jobs.
Meeting Community Needs
- RBC will provide $7 billion in financing for the construction, retrofitting and renovation of affordable housing1 and sustainable housing in Canada, to be committed over five years. We believe this would translate into approximately 25,000 housing units. In addition, RBC will begin offering lending that assists homeowners in redeveloping single family residences into duplexes, triplexes, multiplexes and laneway homes by June 30, 2024.
- RBC remains committed to donating 1 per cent of its Canadian net income before tax each year. The addition of HSBC Canada will allow us to increase our support of Canadians and their communities from coast to coast.
- RBC will commit $5 million over five years to support Manitoba’s agricultural and agri-processing sector, contributing to innovation and security in Canada’s food supply. This builds on RBC’s commitment as a founding member of the Canadian Alliance for Net-Zero Agri-food (CANZA).
Ensuring a smooth transition for clients and employees
- RBC is looking forward to welcoming all employees from HSBC Canada, enabling their client-facing advisors to continue to serve their existing clients and deliver exceptional advice and service, and showcasing the opportunities available at RBC. To allow RBC and incoming HSBC Bank Canada employees an opportunity to work together, understand talent and skills, and to explore roles within RBC’s organization, RBC will provide continued employment for HSBC Bank Canada employees2 for a minimum period of six months after the transaction closes.
- RBC remains committed to ensuring clients get significant value, exceptional service and competitive rates.
- HSBC Canada clients will have access to the largest network of branches and ATMs in Canada, giving them exceptional convenience in their everyday banking.
- HSBC Canada clients will have a dedicated toll-free number to call should they have questions about their transition to RBC. RBC will also maintain in-branch service in Cantonese and Mandarin as well as offer Cantonese and Mandarin service in our Advice Centre and through telephone banking.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 94,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 17 million clients in Canada, the U.S. and 27 other countries.
HSBC Sells Canada Banking Operations to Royal Bank of Canada for $10.1 Billion, Gross Assets of $94.6 Billion
1st December 2022 – HSBC, one of the largest banking group in the world with $2.9 trillion assets, is selling HSBC Canada banking operations to Royal Bank of Canada for $10.1 billion, with gross assets of $94.6 billion (HSBC Canada banking operations). HSBC has been in Canada for over 40 years and has more than 130 branches and over 780,000 retail and commercial customers. HSBC: “The review considered HSBC Canada’s relatively low market share and the Group’s ability to invest in HSBC Canada’s expansion and growth in the context of opportunities in other markets, and concluded that the best course of action strategically for the HSBC Group and HSBC Canada was to sell the business. The transaction will unlock significant value for the HSBC Group.” Noel Quinn, CEO of HSBC Group: “HSBC Canada is a high performing and profitable bank, with strong leadership and exceptional people. I am grateful to the whole team for their hard work in supporting our clients over many years. We decided to sell following a thorough review of the business, which assessed its relative market position within the Canadian market and its strategic fit within the HSBC portfolio, and concluded that there was a material value upside from selling the business.”
HSBC Sells Canada Banking Operations to Royal Bank of Canada for $10.1 Billion
HSBC – We’ve agreed to sell our banking operations in Canada to Royal Bank of Canada (RBC) – one of the largest banks in the country. The deal is worth CA$13.5bn (US$10.1bn) and is expected to be completed in late 2023, subject to regulatory and governmental approvals. As a result of the deal:
- HSBC Group will generate an estimated pre-tax gain of c.US$5.7bn
- Our common equity tier 1 ratio is expected to get a boost of c.130 basis points over and above existing capital plans
- The HSBC Board will consider opportunities for organic growth and investment and how much of the proceeds should be used for a one-off dividend and/or share buybacks (in addition to any existing share buyback programme)
We continue to target a return on average tangible equity of at least 12% from 2023, excluding the gain on this transaction. We remain committed to this target after completion of the sale.
Noel Quinn, HSBC Group Chief Executive: “HSBC Canada is a high performing and profitable bank, with strong leadership and exceptional people. I am grateful to the whole team for their hard work in supporting our clients over many years. The deal makes strategic sense for both parties, and RBC will take the business to the next level. We look forward to working closely with RBC’s leadership team to ensure a smooth transition for our clients and colleagues. Our Group strategy is unchanged, and closing this transaction will free up additional capital to invest in growing our core businesses and to return to shareholders.”
Strategic review
The sale agreement follows a strategic review of HSBC Canada, which is among Canada’s premier international banks with more than 130 branches and over 780,000 retail and commercial customers. The review took into account:
- Our relatively low market share in Canada
- Our ability to invest in HSBC Canada’s expansion and growth in the context of opportunities in other markets
- Strong expected interest from other banks in purchasing a successful business
It’s business as usual for HSBC in Canada until the transaction completes.
Linda Seymour, HSBC Canada CEO: “Thank you to our valued clients in Canada who have trusted us to fulfil their ambitions in both good and challenging times for over 40 years. It’s our privilege to work with you and we look forward to serving you through the transition and beyond.”
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,992bn at 30 September 2022, HSBC is one of the world’s largest banking and financial services organisations.
About RBC
Royal Bank of Canada is one of Canada’s biggest banks, and among the largest in the world based on market capitalisation. It has over 92,000 employees serving 17m clients in Canada, the US and 27 other countries. It is one of North America’s leading diversified financial services companies, and provides personal and commercial banking, wealth management, insurance, investor services and capital markets products and services on a global basis.
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