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HSBC Holdings PLC HSBC has agreed to sell its retail banking operations in Bahrain to the Bank of Bahrain and Kuwait (BBK) in light of the ongoing global restructuring plan. The deal excludes its corporate and private banking businesses in Bahrain.
The deal will comprise a transfer of retail loans, deposits and accounts of nearly 76,000 customers to BBK. Financial details of the deal, which is anticipated to be completed in the fourth quarter of 2025, were kept under wraps.
This move aligns with HSBC’s transformation plan to improve operating efficiency and a strategic shift toward the Asian region. In 2020, the company announced its transformation plan to reshape its underperforming businesses, simplify complex organizations and reduce costs.
Other Restructuring Efforts by HSBC
HSBC has been scaling back its operations in underperforming regions to reduce costs and accelerate its shift toward the Asian region.
In sync with this, last week, a person with direct knowledge of the matter reported to Reuters that HSBC has axed nearly 40 investment bankers in Hong Kong. Also, last month, Bloomberg reported that HSBC plans to close its mergers and acquisitions (M&A) and some equities businesses in Europe and the Americas to enhance its focus on the Asian region.
In December 2024, the company agreed to sell its French life insurance arm, HSBC Assurances Vie (France), to Matmut Société d’Assurance Mutuelle.
In October 2024, the company announced an initiative to simplify its organizational structure and operate through four distinct lines of business – Hong Kong, UK, Corporate & Institutional Banking, and International Wealth & Premier Banking. The company announced the appointment of leadership teams across the segments in December 2024.
In September 2024, the company agreed to sell its private banking business in Germany to BNP Paribas and its South Africa business to FirstRand Bank and Absa.
Additionally, in August 2024, the company announced a partnership with Bajaj Allianz General Insurance in India to bolster its insurance solutions business. In June 2024, the company acquired Citigroup's retail wealth management business in China, while in January, it acquired Singapore-based SilkRoad Property Partners Group.
Similarly, other European banks have been focusing on streamlining their global operations. In December 2024, the Financial Times reported that Deutsche Bank DB aims to strengthen its fixed-income trading business in the Americas. DB has been restructuring its IB operations since 2019 to establish itself among the top five banks in the United States.
Also, Reuters reported that UBS Group AG UBS intends to transform its wealth management business in the United States into six divisions and focus more on affluent clients below the ultra-wealthy level. The transformation plan indicates UBS’ efforts to enhance its performance in the United States.