HSBC announces exit from US retail banking and reallocates top positions

A woman wearing a protective mask walks past an HSBC bank logo.

Gonzalo Fuentes | Reuters

HSBC is set to pull out of retail banking in the United States, a source familiar with the matter told Reuters on Monday, as Europe’s largest bank seeks to exit from a business that has long been under -perform.

Exiting consumer activities in the United States will be part of the lender’s strategy update scheduled for Tuesday, as chief executive Noel Quinn looks to cut costs, increase commission income and continue the shift in lender to Asia.

The sale or closure of its approximately 150 remaining branches in the United States, after closing 80 last year, would mark the end of HSBC’s struggle to turn around a company that has struggled to break through to its incumbent domestic competitors. .

Ahead of the strategy update, Quinn overhauled several of his senior lieutenants on Monday.

HSBC has appointed Nuno Matos as Managing Director of its private and wealth banking business, while Chief Compliance Officer Colin Bell has become Head of European Business at HSBC.

Michael Roberts has been appointed CEO for the United States and the Americas, while Stephen Moss will move to Dubai as head of operations in the Middle East, North Africa and Turkey, the bank said.

By moving Moss to Dubai, HSBC said it was expanding its strategic ambitions in the Middle East, suggesting the region will be an important part of the new strategy alongside an existing plan to ‘pivot’ more to Asia. .

The bank also said it is expanding the remit of CFO Ewen Stevenson, who will now also lead the bank’s transformation program and its mergers and acquisitions plans.

HSBC is expected to announce an expected drop in annual profits on Tuesday reflecting the impact of the Covid-19 pandemic.