UK-based banking and financial services group HSBC has announced the sale of 195 of its retail branches in the US.
The branches, primarily in Upstate New York, are to be sold to First Niagara Bank for approximately $1 billion (approx. £608 million).
As of 31 May 2011, the branches held approximately $15 billion in deposits, $15 billion in gross assets including $2.8 billion in loans and $4.3 billion in assets under management.
HSBC has also decided to consolidate approximately 13 branches located in Connecticut and New Jersey into nearby HSBC branches by the first quarter of 2012, subject to regulatory approval.
The company was keen to emphasise that it is still committed to its operations in the US, including those in Upstate New York. It said it would continue to provide a full suite of international commercial banking offerings, including trade and cash management products and services through its four business centres in the region.
Commenting on the news, Niall Booker, group managing director and chief executive officer of HSBC North America, said: "HSBC is committed to the US and leveraging our international network and skill-set, which are our competitive advantages. This transaction is part of the strategy outlined in our May 2011 Investor Day presentation to align our US business with our global network and meet the local and international needs of domestic and overseas clients.
“We've been proud to serve the Upstate New York community for many years and look forward to continuing our engagement in the region through a strong commercial and corporate banking presence. I would like to take this opportunity to thank our branch employees and retail branch customers in the region for their loyalty over the years. Our priority is to make this transfer as seamless for them as possible."
The First Niagara transaction is expected to close in early 2012.
Headquartered in London, HSBC serves customers worldwide from around 7,500 offices in 87 countries and territories in Europe, Asia-Pacific, the Americas, the Middle East and Africa. With assets of US$2,598 billion as of 31 March 2011, HSBC is one of the world's largest banking and financial services organisations.