By Sabela Ojea

 

HSBC Holdings PLC said Friday that it has signed a memorandum of understanding for the potential sale of its retail banking business in France, which is expected to bring a pretax loss on sale of around $2.3 billion.

The U.K. lender said the potential sale to My Money Group, its subsidiary Banque des Caraibes SA and My Money Bank--which is expected to complete in the first half of 2023--would also bring an additional impairment charge of $700 million.

The agreement also includes the sale of the Credit Commercial de France brand and, subject to satisfaction of several conditions, HSBC's 100% ownership interest in HSBC SFH and its 3% ownership interest in Credit Logement, it said, adding that it doesn't include HSBC's life insurance or asset management manufacturing businesses.

HSBC said the signing of this memorandum will enable it to focus its business in Continental Europe and to continue accelerating the transformation of its European wholesale banking franchise.

Regarding the employees affected by the exit, the bank said that around 3,900 HSBC employees are expected to be transferred with the business.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

June 18, 2021 10:18 ET (14:18 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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