HSBC set to sell part of its South American operations

10 May 2012

HSBC has announced it plans to continue streamlining its global business by selling some of its South American operations.

In a statement issued to the Hong Kong stock exchange this morning (10 May), the major European bank revealed it is in negotiations to get rid of a number of its divisions in the Latin American region.

Last year, chief executive of the group Stuart Gulliver said he would oversee radical changes in the way the company operates globally in order to place greater focus on its core businesses ahead of new regulatory requirements being introduced.

For instance, the fact the new Basel III rules will require banks to tier one reserve capital ratios of six per cent after their implementation begins next year.

With this in mind, HSBC has opted to attempt to free up more of its balance sheet by selling its divisions in Uruguay, Paraguay, Colombia and Peru.

Earlier this week, the bank revealed its gross profit increased by 25 per cent to $6.8 billion in the first quarter of 2012.

By Tony Aynsley

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