HSBC IsĀ In Talks To Sell Russian Unit To Expobank, Sources Say
(Bloomberg) -- HSBC Holdings Plc is in talks to sell its Russia unit to local lender Expobank, according to two people with knowledge of the discussions.Ā
The talks on a deal are at an advanced stage, said the people, who asked not to be identified because the information isn't public and no agreement is assured. Spokespeople for HSBC and Expobank declined to comment.
A deal would mark another exit of an international lender after the Kremlin-ordered invasion of Ukraine. Societe Generale SA agreed to sell its Rosbank PJSC unit to the investment firm of Russia's richest man, Vladimir Potanin, taking a roughly 3 billion-euro hit on the deal. Wall Street firms including Goldman Sachs Group Inc. and JPMorgan Chase & Co. said in March they would wind down operations there.Ā
London-based HSBC exited retail banking in Russia several years ago and now primarily serves corporate clients. The unit's total assets stood at 89.9 billion rubles ($1.4 billion) as of June 2021, when it employed 249 people.
HSBC said in April it wasn't accepting new business or customers at its Russia unit, but that it wouldn't fully withdraw from the nation as it had a responsibility to its multinational corporate clients. The bank took a $250 million charge in the first quarter related to Russian counterparties.
Expobank, owned by Russian entrepreneur Igor Kim, has offices in over 50 Russian cities and covers corporate and retail banking and other financial segments. Neither the bank nor its owner are sanctioned.Ā
Other international banks are weighing their futures in Russia. Austria's Raiffeisen Bank International AG has said it's considering a sale, as well as alternatives that could see it retain ownership. UniCredit SpA is considering selling its Russian unit through a structure that would allow the bank to repurchase the subsidiary if the geopolitical situation stabilizes, people familiar with the matter said this week.
More stories like this are available on bloomberg.com
Ā©2022 Bloomberg L.P.
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