British multinational investment bank HSBC is considering an exit from retail banking due to its sluggish performance in the United States.
Over the past several years, the US division of the bank has been suffering losses. That is why the management was forced to seek ways to improve performance of its money-losing business. The coronavirus pandemic was the final straw that dealt a devastating blow to the company's revenue. In the first three quarters of 2020, HSBC's US retail unit lost a record $518 million.
HSBC is weighing up a complete exit from US retail banking as one of the ways to streamline the workflow. The British bank's senior management is currently preparing a detailed plan that is set to be reviewed by the HSBC Holdings Board of Directors. Notably, HSBC has been offering its services in the US market for about 40 years. Despite the fact that its retail banking business in this country may be closed, the company is not going to quit the market.
