(Toronto) The group leader of HSBC Holdings said on Tuesday the bank was looking to sell its Canadian division in part because it saw strong interest from other banks that may be interested in buying it.
Posted at 2:47 p.m.
In a conference call on Tuesday, Noel Quinn said the bank was also considering selling HSBC Bank Canada because of its relatively small market share in the country and its limited interconnection with HSBC’s international business.
He says potential buyers can put a significantly higher value on the business than it has for HSBC in its earnings stream.
HSBC announced in early October that it was reviewing its strategic options for its wholly-owned subsidiary in Canada, while noting that the review was still in its early stages.
HSBC Bank Canada on Tuesday reported its highest ever pre-tax profit of $298 million for the third quarter, which compares with a profit of $234 million for the same period last year.
Net profit after tax was 219 million for the quarter ended September 30, compared with 171 million a year earlier.