HSBC is eyeing the sale of its wholly-owned Canadian business, while not revealing details regarding the valuation. According to Bloomberg Intelligence, a disposal of the Canadian unit could reap nearly $10bn. HSBC Bank Canada has four divisions – commercial banking, personal banking, investment banking and markets services. It is among HSBC’s more profitable businesses and made pre-tax profits of CAD 490mn ($362mn) in 1H 2022. As per its end-June results, the unit had assets of CAD 125bn ($92bn) and equity of CAD 5.8bn ($4.3bn). This come after a series of moves by HSBC to exit some of its international operations in recent times – exiting retail banking in the US last year and selling its French retail business as part of a plan to improve profits. Bloomberg notes that while Canada is a relatively small part of HSBC’s Group’s overall business, it was the third largest contributor to its commercial banking profits in 2021 behind the UK and Hong Kong.
HSBC’s dollar bonds were marginally higher – its 4.6% Perp was up 0.2 points to 69.54, yielding 8.7%
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