HSBC is set to exit its business banking portfolio in the US, as part of its strategy to streamline operations and concentrate on growth in Asia and the Middle East, reported The Wall Street Journal.
“Following a strategic review of our business, we have decided to exit our business banking portfolio in the US,” the bank stated.
It assured support for affected clients during their transition to alternative providers, while retaining some within its Mid-Market and Global Network Banking sectors. Reports indicate this decision impacts approximately 4,500 clients.
The UK-based financial institution has been scaling back its global presence to enhance profitability and focus on Asian and Middle Eastern markets.
Earlier this year, HSBC announced plans to downsize its mergers and acquisitions and certain equities operations in the Americas and Europe. The Wall Street Journal noted that 40 employees from the US business banking division were laid off, although HSBC declined to comment on this.
In 2021, HSBC revealed its intention to exit US mass-market retail banking, involving the sale and winding down of unprofitable segments. The bank sold its Canadian operations to Royal Bank of Canada in 2022 for C$13.5bn.
Further restructuring efforts were evident in February 2025, when HSBC agreed to sell its retail banking unit in Bahrain to Bank of Bahrain and Kuwait (BBK). The transaction, which excludes HSBC’s corporate and private banking businesses in Bahrain, will transfer of retail loans, deposits, and accounts of around 76,000 customers to BBK.
HSBC’s global restructuring includes exiting low-return consumer banking markets and consolidating its commercial and investment banking divisions.
The British lender’s recent announcement to wind down its mergers and acquisitions and select equities businesses in Europe and the Americas marks a significant shift from investment banking.
