HSBC offloads New York branches for $1bn

1st Aug 2011 07:03

HSBC, the global banking giant which is to release its first half results later today, has announced the sale of 195 branches in the US for $1bn.Through HSBC Bank USA, HSBC's wholly-owned subsidiary, the group has reached agreement to offload the branches (the majority of which are in Upstate New York) to First Niagara Bank for a consideration equal to a premium of 6.67% of the deposits to be transferred on closing, HSBC said."HSBC is committed to the US and leveraging our international network and skill-set, which are our competitive advantages," said Niall Booker, managing director and chief executive officer of HSBC North America."This transaction is part of the strategy outlined in our May 2011 Investor Day presentation to align our US business with our global network and meet the local and international needs of domestic and overseas clients," Booker added.Related item: HSBC profits rise, to cut 30,000 jobsBC