HSBC agrees to sell French retail bank for $2.3B loss

  • HSBC (NYSE: HSBC ) agrees to sell its troubled French retail bank to Cerberus-backed My Money Group at $2.3B loss, as slow-growing European and North American markets struggle with low central bank interest rates and competition against larger domestic players, according to Reuters.
  • My Money will acquire HSBC 's 244 branches, 3,900 staff, and $28.5B (24B euros) in assets.
  • As per Reuters, My Money Chief Executive Eric Shehadeh says, "our aim would be for the bank to return to profitability, three years after we have taken control of it."
  • The sale price will be a nominal 1 euro and post-deal the business will have a $2B net asset value.
  • My Money will also restore HSBC 's Credit Commercial de France and it plans to invest 200M euros in the HSBC unit's technology infrastructure.
  • If HSBC and My Money proceed after consulting with employees the deal could be signed by Q3/Q4 of this year, with completion due 2023.
  • HSBC will retain its investment and business banking units within the French business.

    Over the current book year the total revenue will be 50.48 billion GBp (consensus estimates). This is quite lower than 2020's revenue of 67.85 billion GBp.

    Historical revenues and results HSBC plus estimates 2020

    beurskoers

    The analysts expect for 2021 a net profit of 11.11 billion GBp. The majority of the analysts expects for this year a profit per share of 55 GBp. With this the price/earnings-ratio is 7.77.

    Huge dividend HSBC

    For this year most of the analysts expect a dividend of 23 GBp per share. Thus the dividend yield equals 5.38 percent. The average dividend yield of the banks is an attractive 2.91 percent.

    HSBC 's market capitalization is around 8684.93 billion GBp. The HSBC stock was the past 12 months quite unstable. Since last June the stock is 15 percent higher. This year the stock price moved between 282 and 463 GBp.

    Historical stock prices HSBC

    stock hsbc

    On Friday the stock closed at 427.55 GBp.

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