HSBC has announced it intends to offload its private banking arm in Luxembourg.
The HSBC Trinkaus & Burkhardt and HSBC Trinkaus Investment Managers institutions, which mainly work with corporate clients, look set to be bought by the VP Bank Group.
HSBC is looking to make up to $3 billion in additional yearly savings by 2016. It has already achieved $4 billion, but slow growth outside the Asian market means its target to get costs below 52 per cent of revenue has been eased somewhat.
The UK-based bank did not disclose the sale price for the transition, but expects it to be finalised in the fourth quarter of 2013.
By Claire Archer