First Niagara agrees deal for 195 HSBC branches

1 August 2011

First Niagara has agreed a deal to purchase 195 retail branches currently owned by HSBC's US-based business, it has emerged.

HSBC announced yesterday (31 July) that a contract had been drawn up that will see these outlets - which are primarily located in New York - be sold to First Niagara for a sum equal to a premium of 6.67 per cent of deposits to be transferred upon closure.

This is thought to represent a figure of around $1 billion (£609 million) and HSBC has pledged to continue to develop its corporate banking structure in the north-eastern state, while also informing customers its services will remain unaffected throughout the transaction.

Niall Booker, group managing director and chief executive officer of HSBC North America, commented: "HSBC is committed to the US and leveraging our international network and skill-set, which are our competitive advantages."

Meanwhile, HSBC also revealed today that its pre-tax profit has grown to $11.5 billion as it continues its post-recession recovery.

By Asim Shah

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