We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HSBC Holdings (HSBC) Mulls Exit From US Retail Banking Unit
Read MoreHide Full Article
Over the weekend, the Financial Times reported that HSBC Holdings (HSBC - Free Report) is considering a full exit from its U.S. retail banking operation. This is one of the options being considered to improve performance at the North America business.
Other options include scaling back investment banking operations in the country to concentrate on international clients with focus on Asia and Middle East.
Citing persons familiar with the matter, the report states that senior management personnel intends to outline the plan in the coming weeks. It is to be noted that outright exit from the United States is not in the cards.
Performance at North America business has been disappointing over the past years. During the first three quarters of 2020, it reported pre-tax profits of $16 million. Also, in 2019 and 2018, the division earned pre-tax profits of $767 million and $799 million, respectively.
Further, at the end of third-quarter 2020, HSBC had shuttered 80 U.S. retail branches and now has roughly 150 branches in the East and West coasts of the country.
The above mentioned initiative is part of HSBC’s bigger plan, under which it intends to lower annual costs to below $31 billion by 2022. The target is well below $42.3 billion expenses incurred in 2019.
HSBC along with several other banks like Deutsche Bank (DB - Free Report) , Goldman Sachs (GS - Free Report) , Wells Fargo and Lloyds Banking Group (LYG - Free Report) have been undertaking efforts to streamline business. Banks across the world are facing economic slowdown caused by the coronavirus pandemic and low interest rates. Thus, with an aim to improve operating efficiency and focus on core business, several banks are taking initiatives to support financials.
Shares of HSBC have rallied 24.3% over the past three months, outperforming the industry’s growth of 20.5%.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
HSBC Holdings (HSBC) Mulls Exit From US Retail Banking Unit
Over the weekend, the Financial Times reported that HSBC Holdings (HSBC - Free Report) is considering a full exit from its U.S. retail banking operation. This is one of the options being considered to improve performance at the North America business.
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/hsbc_20201130.jpg)
Other options include scaling back investment banking operations in the country to concentrate on international clients with focus on Asia and Middle East.
Citing persons familiar with the matter, the report states that senior management personnel intends to outline the plan in the coming weeks. It is to be noted that outright exit from the United States is not in the cards.
Performance at North America business has been disappointing over the past years. During the first three quarters of 2020, it reported pre-tax profits of $16 million. Also, in 2019 and 2018, the division earned pre-tax profits of $767 million and $799 million, respectively.
Further, at the end of third-quarter 2020, HSBC had shuttered 80 U.S. retail branches and now has roughly 150 branches in the East and West coasts of the country.
The above mentioned initiative is part of HSBC’s bigger plan, under which it intends to lower annual costs to below $31 billion by 2022. The target is well below $42.3 billion expenses incurred in 2019.
HSBC along with several other banks like Deutsche Bank (DB - Free Report) , Goldman Sachs (GS - Free Report) , Wells Fargo and Lloyds Banking Group (LYG - Free Report) have been undertaking efforts to streamline business. Banks across the world are facing economic slowdown caused by the coronavirus pandemic and low interest rates. Thus, with an aim to improve operating efficiency and focus on core business, several banks are taking initiatives to support financials.
Shares of HSBC have rallied 24.3% over the past three months, outperforming the industry’s growth of 20.5%.
Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>