HSBC to close its US business banking unit to simplify operations

HSBC is exiting its business banking portfolio in the United States, as it continued to simplify operations and shift its focus to Asia and Middle East markets, Reuters reported.

“Following a strategic review of our business, we have decided to exit our Business Banking portfolio in the United States,” it said in a statement.

“We are supporting impacted clients while they transition to a suitable alternative provider and will retain some clients in our Mid-Market and Global Network Banking business,” it added.

The Wall Street Journal reported on Friday that HSBC’s move would affect about 4,500 clients.

The UK-headquartered lender has been reducing its global footprint in an attempt to boost profits and expand in Asia and Middle East markets.

The bank said in January it would wind down M&A and some equities businesses in the Americas and Europe.

The Wall Street Journal said HSBC laid off 40 employees in the U.S. business banking division. HSBC declined to comment,

In 2021, the bank said it was withdrawing from U.S. mass market retail banking by selling some parts of the money-losing business and winding down others.

It sold its Canadian business to Royal Bank of Canada in 2022 for C$13.5 billion.