HSBC ‘mulls sale of German units’ amid Asia focus
Sources say lender working on business review, but corporate banking, trading activities unaffected
HSBC Holdings is exploring the sale of various business units in Germany, including its wealth-management, custody and fund administration units, according to people familiar with the matter.
The London and Hong Konglisted lender was working with advisers on a review, they said, asking not to be identified because the talks were private. The discussions were at an early stage and there was no certainty they would lead to a sale, they added.
Corporate banking and trading activities in the country were not affected by the review, the people said. A spokesperson for HSBC declined to comment.
The disposals would add to HSBC’s long list of exits from business activities and countries in recent years, including North America and its French retail operations. The exits are part of a move to sharpen its focus on its core Asian operations, with the bank looking to cater to German companies operating in Asia.
The UK-based lender completed the sale of its Canadian business to Royal Bank of Canada last Thursday for a US$4.9 billion gain, unlocking “significant value” for the group, according to a stock exchange filing. The group expects to take a loss from the sale of its French retail banking assets, delayed since mid-2021.
Inka, HSBC’s German fund administration business, is one of the biggest in the industry with around ¤400 billion (HK$3.37 trillion) of assets under administration, according to its website. Fund administration firms cater to asset managers and provide services such as accounting, financial reporting and portfolio valuations.
The last big transaction in the custody space was Credit Agricoleowned CACEIS’s acquisition of Royal Bank of Canada’s European asset servicing operations. French investment bank Societe Generale is said to be exploring options for its custodian business.
HSBC’s German private-banking activities generated around US$90 million in revenues in 2023, according to the bank.
Banking deals in Europe have received a fresh impetus this year as some private equity funds and governments seek to sell their post-financial crisis investments.