HSBC to sell Canada business to RBC for $10b

NEW YORK. HSBC has agreed to sell its business in Canada to Royal Bank of Canada for $13.5 billion Canadian dollars ($10.04 billion) in cash.

The sale comes as HSBC pursues a strategy of focusing its resources on its core markets, amid pressure from its biggest shareholder Ping An to improve its performance.

Chinese insurance company Ping An Insurance Group has been pushing HSBC to split off its Asian business to boost returns.

“We decided to sell following a thorough review of the business, which assessed its relative market position within the Canadian market and its strategic fit within the HSBC portfolio,” CEO Noel Quinn said.

The transaction is expected to complete in late 2023 and will result in a pre-tax gain of $5.7 billion for HSBC, the British bank said in a statement.