SBC Holdings Plc will suffer losses in the sale of the French unit

AK&M 21 June 2021 22:25

British bank HSBC Holdings Plc may suffer losses of about $3 billion from the sale of the French unit in the field of retail banking services, as it was informed in the media reports of June 21.

HSBC Bank has agreed to sell its non-profitable business in France to New York private investment company Cerberus Capital Management LP for a symbolic price of 1 euro.

The deal is expected to close in the first half of 2023.

As a result of this transaction, HSBC can record a pre-tax loss of about $2.3 billion, as well as write off goodwill in the amount of 700 million euros, the bank said.

HSBC is winding down retail operations in France and the US, which are unprofitable, betting on Asia. In the next five years, HSBC intends to invest about $6 billion in Asia.

HSBC will stop serving individual customers and small businesses in the US. The bank will sell 90 of 148 branches in the country.