HSBC Sale Announcement - HSBC Canada (2024)

FAQs

Is HSBC Canada being sold? ›

In November 2022 HSBC Group agreed to sell its banking operations in Canada (HSBC Canada) to the Royal Bank of Canada(RBC). This sale has been completed on the 28 March 2024.

A first interim dividend of $0.1 per share has been approved by the board. HSBC is off to a productive start in 2024 with the sale of two business units in the Americas although profits fell slightly.

What's happening: As with your personal bank accounts, RBC will identify which RBC credit cards to offer you based on the features of your current HSBC credit cards, and the bank will mail them to you by the end of March 2024. Your personal credit limits and balances will be the same as they were with HSBC.

March 29 (Reuters) - HSBC Holdings (HSBA. L) , opens new tab said it completed the C$13.5 billion ($9.96 billion) sale of its Canadian unit, HSBC Bank Canada, to Royal Bank of Canada (RY.TO) , opens new tab (RBC) on Thursday.

With the closing of the acquisition, conversion activities will now begin. HSBC Canada's branches and offices will open for business on Monday, April 1, 2024 as RBC locations.

HSBC Holdings plc ('HSBC') today announces that it will exit its US domestic mass market retail banking business through several transactions, pending regulatory approval. They include: Exiting 90 branches out of a current branch network of 148 branches.

Roughly 800,000 East Coast customer accounts will be transferred to Citizens Bank, and about 50,000 West Coast accounts will be switched to Cathay Bank by the first quarter of next year, WSJ noted. Customers living abroad will also have accounts transferred unless they meet HSBC minimum requirements.

Fitch Ratings - Toronto - 06 Oct 2023: Fitch Ratings has maintained its Rating Watch Positive (RWP) on HSBC Bank Canada's (HSCA) Long- and Short-Term Issuer Default Ratings (IDRs) at 'A' and 'F1', respectively.

As part of the takeover, which was also approved by the federal Competition Bureau, RBC also guaranteed it will keep former HSBC front-line branch staff employed for at least two years, even if the branches they had worked at are closed in the wake of the deal.

In April 2022, Citizens Bank completed the acquisition of 80 branches from HSBC in New York City, New Jersey, Pennsylvania, Washington, D.C., Maryland, Virginia, and Florida. HSBC's 10 West Coast branches are expected to be sold to Cathay Bank.

Why does RBC want HSBC? ›

"RBC's acquisition of HSBC Canada expands the depth and breadth of our international banking capabilities and builds our ability to connect Canadians to the global economy," added Neil McLaughlin, group head, Personal & Commercial Banking, RBC.

HSBC

HSBC Bank / Parent organization

On Nov. 29, 2022, the Royal Bank of Canada announced its plans to buy HSBC Bank Canada in an agreement heralded as Canada's biggest domestic banking deal on record. The Minister of Finance approved the sale on Dec. 21, 2023.

HSBC's intention is to cut costs and downsize to much smaller offices, which is a concrete illustration of the impact of hybrid working on demand for office space. The most revealing part of the story is not where the bank is moving from, but where it is moving to: back into the City of London.

Which accounts transitioned? On February 18, 2022, one or more of your accounts with HSBC became Citizens accounts. Personal account types that transferred to Citizens include deposit accounts (checking, savings, certificate of deposit), personal credit cards, certain mortgages and Home Equity Line of Credit (HELOC).

The decision, as the wider banking sector has consistently claimed over many years, is the result of the surge in online banking. It has led to declining demand for over-the-counter transactions, with HSBC saying that some of those to be shut were dealing with fewer than 250 people a week.