HSBC ponders exit from US retail banking

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HSBC Holdings PLC (LON:HSBA) is mulling a complete exit from its US retail banking operations, according to a report.

The FTSE 100-listed lender’s senior management will present a plan for the US business to the board in December, the Financial Times reported.

Last month the Asia-focused bank revealed that, as part of a wider group restructuring, it will accelerate the transformation of its US business, where it has long struggled to compete with much bigger local players.

Investors have been promised an update on the plans with its 2020 full-year results in February next year.

Looking across the group, chief executive Noel Quinn said that he was looking to step up the group’s transformation plans, with a new business model where it will seek to switch its main source of income from interest rates to fee-based businesses, while also shrinking in size and slashing costs by around a quarter.

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