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You can see other videos from our team by tapping here. The lender said in a statement that the possibility of the sale of HSBC's 100 per cent equity stake in HSBC Bank Canada is one of the options being explored. The bank said that the review is at an early stage and no decisions have been made.
HSBC said in a statement that they are reviewing their strategic options with regard to our wholly owned subsidiary in Canada. The HSBC reviews its businesses in all of its markets. The lender instructed investment bankers at JPMorgan Chase Co. to sound out buyers, according to a person familiar with the matter. According to Bloomberg Intelligence, a disposal of the Canadian unit could reap nearly US $10 billion. The British lender has had operations in Canada since 1981, according to its website. HSBC Bank Canada operates more than 130 branches across the country, and is the seventh largest bank in the country. The bank said in its annual report that Canada accounted for about four per cent of HSBC's pretax profit and three per cent of its global customer accounts at the end of last year. Commercial banking was the largest source of pretax profit, and the firm's Canadian operations produced US $768 million of pretax profit. While Canada is a relatively small part of HSBC's overall business, it was the third largest contributor to the company's commercial banking profits in 2021 behind the United Kingdom and Hong Kong and ahead of markets like mainland China, the United States and India.
According to accounts filed by the business, the bank employed 5,348 staff in its Canadian unit at the end of last year. HSBC Bank Canada provides all of the bank's services, including retail and commercial banking, wealth management and investment banking. With US $7 billion of equity and US $70 billion in loans at fiscal 2021, a disposal price could be close to US $10 billion, based on Canadian bank valuations, but would not be significant to group strategy, growth or capital return capacity. Jonathan Tyce, BI analyst, said he was a BI analyst.