HSBC sells Japanese private banking arm

21 December 2011

Credit Suisse is to purchase the Japanese private banking division of HSBC as it seeks to increase its presence in the key Asian market, it has emerged.

HSBC announced earlier this year it was to undertake a new strategic direction in Asia in order to both reduce its costs by around $3.5 billion and make its operations there more focused and streamlined.

And, according to Reuters, this process has now begun in earnest with the sale of this arm of its business to a fellow European bank.

No exact figures on the deal have been released, but HSBC did state that the gross assets of this business were worth around $2.7 billion two months ago.

Daniel So, financial strategist at Sun Hung Kai, told the news source this is indicative of the fact the bank does not see much "growth potential" in Japan.

However, Credit Suisse, which recently had its credit rating downgraded to AA- by Fitch, is determined to heighten its profile in the country.

By Claire Archer

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