Mortgages
HSBC ‘weighs plans’ for high street bank sale – reports
HSBC could spin off its £20bn British retail banking operation, a move which could speed up its potential exit from the UK, the Sunday Times reports.
On Friday the bank announced it was examining whether to move its headquarters out of the UK, citing risks posed by the potential post-general election EU referendum.
Senior sources told the Sunday Times the country’s second largest retail banking outfit is also weighing up whether to sell-off its UK retail operation.
HSBC launched into the intermediary mortgage channel for the first time on 6 October last year and was expected to broaden distribution over time.
Sources said the bank’s “hand had been forced” by the ring-fencing scheme brought in after the financial crisis.
The scheme means lenders will have to put their retail operations into separate companies, with different boards.
“If you can’t control the retail arm, why would you hold shares in it?” said one source.
The paper said a spin off would recreate the old Midland Bank, which HSBC bought in 1992.
Banking experts said the break-up would tip the bank’s decision to move its headquarters, most likely to Hong Kong.
HSBC declined to comment on the Sunday Times article.
