HSBC mulls sale of Canada unit

LONDON: HSBC is mulling the sale of its Canadian business, the Asia-focused bank said Tuesday.

“We are currently reviewing our strategic options with respect to our wholly owned subsidiary in Canada,” the London-based lender said in a statement.

“Amongst the options being explored is a potential sale of HSBC Group’s 100-percent equity stake in HSBC Bank Canada.”

The division is worth around $9.0 billion, according to the Financial Times.

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“HSBC Bank Canada is a very strong business and Canada’s leading international bank,” the company added.

The news comes as the HSBC faces calls from its largest shareholder, China’s Ping An Insurance, to separate Asian and Western operations.

Ping An, which has a 9.2-percent stake, reportedly wants it to spin off Asian activities to unlock shareholder value amid tensions between China and the West.

However, HSBC has hinted that it wants to retain its current structure, while continuing a pivot to Asia.

HSBC in August posted rising first-half net profit and appeared to rebuff Ping An’s calls.

Profit after tax rose 14 percent to US$8.3 billion in the reporting period.

It also outlined plans to return to quarterly dividends next year.

The lender was among a number of major banks to cancel dividends early in the pandemic after a de facto order from the Bank of England – a move that upset some Hong Kong investors.