HSBC continues to explore ways to improve profitability via market exits, this time with the potential sale of its Canada business. HSBC is reviewing strategic options for its Canada business, according to a statement from the bank.
A review of the business is in its early stages, and one of the options would be the sale of HSBC’s 100 percent stake in the Canada unit, according to a report by British media outlet Sky News citing unnamed sources. HSBC is working with JPMorgan to sound out prospective buyers for the business, and the deal could be valued at an estimated $7 billion though no final decision has been made.
If successful, the sale of the Canada unit would mark yet another market departure to improve profitability and another move to defend Ping An’s campaign to push for the bank to break up by spinning off its Asia arm.
Last year, HSBC rejigged its retail business with the announcement of a US exit and the sale of its France unit. And over the weekend, HSBC started briefing a group of fund manager investors on the potential listing of its Indonesia business, according to a report citing unnamed sources.