HSBC completes exit from French retail market (2024)

HSBC has made a “positive start” to the new year according to its chief after the lender confirmed the sale of its French retail banking business Crédit Commercial de France (CCF), a subsidiary of My Money Group.

“All necessary regulatory approvals were obtained and the transaction completed on 1 January 2024,” the bank confirmed in a statement yesterday.

“This represents an important milestone in our strategic vision for Europe,” HSBC’s chief executive Noel Quinn said.

“I am delighted with this positive start to 2024 – our team in Europe will continue with the aim of becoming the leading international wholesale bank in Europe, complemented by a targeted Wealth and Private Banking business,” he continued.

The deal, initially announced back in 2021, was postponed last year as rising rates forced Cerberus-backed My Money tostump up more cash.

Under the initialterms of the agreement, My Money would have acquired 244 retail branches and around 3,900 employees for the notional fee of €1.

However, under the new terms of the deal, Cerberus will invest €225m (£192.5m) into the business. At the same time, HSBC will retain a €7bn portfolio of loans which were originally going to be part of the transaction.

HSBC has been withdrawing from underperforming markets over the past couple of years, including Canada and Greece as it doubles down on Asia, where it already makes the majority of its money.

There are likely to be more withdrawals to come. In aninterview with Reuterslast year, finance chief Georges Elhedery said the bank is considering exiting as many as a dozen countries as it pivots towards Asia.