HSBC concludes sale of retail banking business to Crédit Commercial de France LeapRate
HSBC Holdings (HSBC) started 2024 with the completion of the long-awaited sale of its retail banking business in France to Crédit Commercial de France (CCF). The company’s subsidiary, HSBC Continental Europe (HBCE), sealed the deal after obtaining the required regulatory green lights.
The British lending company acquired Crédit Commercial de France, a financial services provider and subsidiary of the My Money Group, more than two decades ago in April 2000. Reportedly, this acquisition amounted to a minimum of €11.08bn.
Reuters indicated that after the sale, My Money Group will own the total assets, which are estimated to be more than €30bn. The agreement also boosts the solvency standing of this company with a common equity tier (CET) 1 ratio exceeding 15%. According to Reuters, My Money Group said:
Further reinforcing its financial strength is a substantial liquidity position of around 10 billion euros in cash.
In June 2021, HSBC indicated the intended sale was hindered due to regulatory capital concerns. At that time, it proposed a nominal price of €1. Noel Quinn, HSBC’s group CEO, commented:
I am pleased to announce the completion of the sale of HSBC‘s Retail Banking activities in France. This represents an important milestone in our strategic vision for Europe. I am delighted with this positive start to 2024 – our team in Europe will continue with the aim of becoming the leading international wholesale bank in Europe, complemented by a targeted Wealth and Private Banking business.