LONDON: HSBC Holdings Plc is considering unloading its distribution network in the United States and exit the US retail banking.
The management of the bank is looking at a complete withdrawal from its retail operations in the region. Although according to a person familiar with the matter, a full exit from other businesses in the US is unlikely.
It is expected that the recommendations will be submitted to the board as soon as this week.
According to the Financial Times, which earlier published the news, the analysis is also likely to recommend reducing investment banking activities to focus on foreign clients with a focus on Asia and the Middle East.
A HSBC spokesman declined to comment.
Earlier this year, HSBC announced a sweeping restructuring. It is announcing job cuts of around 35,000 over the next three years as the lender is managing rising geopolitical uncertainties in China and Hong Kong, one of its main revenue drivers.
When it announces its full-year figures next year with new specifics of the company’s plans on capital allocation and costs, the bank said it would announce a further adjustment to its redesign.
The US, where HSBC is weighed down by an expensive coast-to-coast branch network, and Europe, which accounted for nearly half of its assets in 2019 but produced operating losses, are obvious targets for boosting profits.
In Asia, the London-based bank, which seeks to grow in China, earns nearly all of its earnings.