LONDON: HSBC has agreed to sell its Canadian division to Royal Bank of Canada for US$10.1 billion, the Asia-focused banking giant announced Tuesday. The large sale comes after UK-listed HSBC faced calls from biggest shareholder Ping An Insurance Group to cut costs and shift more resources to Asia.

HSBC added in a statement that it would use the funds to invest in its core business and return cash to investors.

“We decided to sell following a thorough review of the business... and concluded that there was a material value upside from selling,” said chief executive Noel Quinn.

The Canadian divestment is expected to be completed in late 2023.

“HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value,” RBC president and CEO Dave McKay said in a separate statement.