HSBC reviewing NZ banking operations
HSBC Holdings is reviewing its New Zealand retail banking operations as the lender looks for ways to streamline its footprint while heading off calls for a full-blown breakup.
The London-based bank is studying strategic options for the business, a spokesperson for HSBC confirmed in response to Bloomberg queries.
“Like many organisations, HSBC regularly engages in business reviews to optimise our network operations for the long term,” the spokesperson said in a statement.
“HSBC’s wholesale business and other operations in New Zealand are not impacted by this review.”
New Zealand generated a pretax operating profit of NZ$50.9 million last year, according to accounts filed by HSBC’s local subsidiary.
Of this, NZ$7.5m came from the lender’s New Zealand wealth and personal banking operations.
HSBC became the first overseas lender to gain a New Zealand banking license in 1987 after the deregulation of the country’s financial industry. The bank operates a handful of branches in New Zealand and provides a full range of commercial and investment banking services as well as its retail business.
The review comes as the bank prunes back its global footprint and focuses on building up its position in Asia, particularly in wealth management. This week, the lender announced the sale of its Canadian unit to Royal Bank of Canada for US$10 billion.
HSBC disposed of its French and US retail operations last year. It agreed to sell its Russian unit in July and last month said it will merge its Omani unit with a local lender.