Global banking giant HSBC is to offload its private banking business in Japan to Credit Suisse for an undisclosed sum.
HSBC said that this deal is in line with its global restructuring strategy outlined back in May that will see 30,000 jobs go. The "Strategy Execution Plan" targeted cost savings of $2.5-3.5bn in order to reach the cost efficiency ratio target of 48-52% by 2013.
Nevertheless, HSBC did say: "As the world's third largest economy, with significant trade flows with the rest of the world, Japan continues to be an important market for HSBC."
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
While there was no price for the sale included in the statement, the value of the gross assets included in the sale was $2.7bn at 31 October.
One source told the Wall Street Journal that the number of employees at Credit Suisse's private banking unit in Japan, currently around 80, "will roughly double" as a result of the acquisition.
The transaction is still subject to regulatory approvals but is expected be completed by the end of the second quarter next year.
-
London Stock Exchange gets go-ahead to run Pisces private stock marketThe Pisces market will allow investors to buy and sell shares in private companies. But how will it work, when will it launch, and who is allowed to use it?
-
Could landlords face National Insurance on rental income?The Treasury is said to be considering a tax increase for landlords in an attempt to boost revenue in Rachel Reeves’s Autumn Budget
