HSBC to Close US Business Banking Unit

HSBC will exit a business that serves small and midsize US companies as part of its strategic overhaul to simplify operations and focus on the Asia and Middle East markets.

“Following a strategic review of our business, we have decided to exit our business-banking portfolio in the United States,” a spokesperson said.

The business banking division serves around 4,400 clients, including firms with up to $50 million in annual revenue.

As part of the wind-down, HSBC is helping customers transition to other providers, while retaining some within other parts of the bank.

The move also prompted around 40 job cuts in the unit earlier this week.

The bank already exited its US mass market retail banking division in 2021 as it lacked the scale to compete. It sold the East Coast domestic mass market and retail business banking businesses to Citizens Bank while Cathay Bank acquired the West Coast operations.

The move is part of a broader restructuring drive under CEO Georges Elhedery, as the UK-based lender continues to streamline its global operations to boost profits and focus on growth in Asia and the Middle East.

 In January, the bank scaled back sections of its investment banking operations across the UK, Europe and North America to focus on targeted M&A and equity capital market capabilities.

More recently, it also reorganized its business divisions into Corporate and Institutional Banking and International Wealth and Premier Banking.