HSBC to sell Canadian brokerage unit to National Bank of Canada
21 Sep 2011
HSBC, Europe's largest bank, is planning to sell its retail brokerage in Canadian to National Bank of Canada.
Yesterday it signed a deal with the Canadian Bank to sell the unit for C$206 million ($208 million) in cash.
The sale comes after the London-based bank sold nearly half of its US retail banking network in August to First Niagara Financial Group Inc, for about $1 billion in cash (See: HSBC to sell 195 US retail banking network to First Niagara for $1 billion), and its card and retail services business in the US to Capital One Financial or $2.6 billion as part of its ongoing North American strategy to focus on commercial and corporate banking (See: HSBC to sell US credit card, retail services to Capital One for $2.6 billion).
Montreal, Quebec-based National Bank of Canada will acquire the full service investment advisory business of HSBC Securities Canada and certain assets related to the segregated fund and insurance business of HSBC Insurance Agency Canada.
HSBC Securities Canada has $14.2 billion of assets under administration, managed by over 120 investment advisors located in 27 offices across Canada with around 70 per cent of its business being centered in Ontario and British Columbia.
The transaction is expected to increase National Bank's 2012 and 2013 recurring EPS by $0.03 to $0.05. National Bank estimates the transaction will reduce its Common Equity Tier 1 ratio under Basel III rules by approximately 40 basis points.
National Bank, Canada's 6th largest bank and 8th largest financial institution by market capitalisation, said that the transaction is another major step in implementing strategy to expand across Canada and add scale to its wealth management platform.
When combined with its recently completed C$273 million acquisition of Wellington West, National Bank will have approximately $80 billion in assets under administration across Canada, over 1,060 investment advisors and more than 50 per cent retail revenues will be generated outside of Quebec.
.webp)
.webp)
.webp)
