The media has released information according to which HSBC is currently considering scaling back its retail banking operations in countries such as Mexico, Malaysia, Indonesia, and some others.
The mentioned financial institution has intentions that envisage focusing on interacting only with wealthier customers in the specified markets. The relevant information was published by the media with reference to anonymous insiders. The journalists also reported that the financial institution plans to cut its costs and start paying more attention to its core markets, including the United Kingdom and Hong Kong.
The media noted that the bank has not yet made a final decision on the mentioned intentions. HSBC did not respond to a journalist’s request for comments.
The bank’s activities in Mexico began 22 years ago. In this country, a financial institution has gained deposits worth almost $30 billion. At the same time, in Mexico, the bank faced certain challenges, including a $2 billion fine in 2012 for failures that formed conditions for money laundering.
HSBC has already exited consumer operations in the United States, Canada, and France as part of measures to pull back its earlier global expansion.
HSBC Group chief executive officer Georges Elhedery, according to media reports, strives to streamline the bank’s operations and reduce costs.
The financial institution has already announced cutting jobs. According to media reports, the implementation of the appropriate solution can deliver annual savings of $500 million.
As we have reported earlier, HSBC Launches New Platform.
