HSBC is all set to announce the sale of its retail banks in Greece as the bank chain plans to double down on its operations in Asia, which, as per the sources, is the lender’s biggest market.
As per credible reports, the deal with the regional lender- Pacreta Bank- is a part of a broader five-year restructuring plan at HSBC, which also included cutting its loss-producing United States retail bank the previous year.
Although, the figures of the deal have not been disclosed yet, it remains subject to union and regulatory approval.
For the uninitiated, the staff of 320 employees from the entire five branches of HSBC will be transferred to Pacreta, in order to avoid job losses because of the deal.
HSBC has also declared its $6 billion plan to develop its top business segments throughout Asia in February last year, as it chases revenue from the west to the east.
The S&P Global Market Intelligence analysts predicted the move to draw attention of the other competitors, who were also aiming towards the potential profits of the continent.
According to sources, nearly half of the budget for the expansion of the Asian project in the coming five years is earmarked for its wealth management business, with sights aimed on the developing incomes in India, Greater China, and Southeast Asia.
The S&P Global Analysts mentioned that the move has placed HSBC up against non-Asian rivals like UBS Group AG and Credit Suisse Group AG, who have been beefing up their wealth management businesses across Asia-Pacific in the recent years, and the renowned local players like DBS Group Holdings Ltd. and Nomura Holdings Inc.
They added that the bank’s pivot strategy might help mitigate the drag on their profits from less interest rates and develop on their strengths in Asia.