HSBC Holdings Plc is exiting a business that serves small and midsize US companies, as it continues an overhaul aimed at making the lender more competitive.
“Following a strategic review of our business, we have decided to exit our business-banking portfolio in the United States,” a spokesperson said in an emailed statement. The division has about 4,400 clients and serves firms with revenue of as much as $50 million.
HSBC is supporting companies as they move to other providers and will keep some clients in other divisions, according to the spokesperson. The bank also cut about 40 jobs in the business-banking unit earlier this week.
The Wall Street Journal previously reported HSBC's decision.
The move comes amid an overhaul announced late last year by Chief Executive Officer Georges Elhedery aimed at improving efficiency and cutting costs. He has already combined HSBC's commercial and investment banking operations, and earlier this year wound down the lender's mergers and acquisition and equity underwriting operations in the US, UK and continental Europe.
HSBC exited its US domestic mass market retail banking business in 2021, agreeing to sell chunks of it to Citizens Financial Group Inc. and Cathay Bank. Still, it's been beefing up its innovation banking operations. Earlier this year, it promoted David Sabow to lead a global expansion of its venture-banking business, a division that provides deposit accounts, loans and other services to startups and venture-capital funds.
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