HSBC Bank to Exit Credit Card Business - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » HSBC Bank to Exit Credit Card Business

HSBC Bank to Exit Credit Card Business

HSBC Bank to Exit Credit Card Business

HSBC Bank, the seventh largest provider of Visa and MasterCards, is looking to sell its U.S. credit card business in order to focus on international growth and greater profitability. If a buyer cannot be found, the banking behemoth said it will simply ease out of its credit card business altogether.

Big Commercial Banks Change Plan

HSBC is one of the largest commercial banks in the U.S. and is eager to pursue its banking expansion in important markets. With nearly $139 billion in deposits as of March 31 and revenue of $33 billion from the U.S. credit card business, the company is looking to restructure and refocus its business lines.

The bank is also the third largest issuer of co-branded and merchant-branded credit cards in the U.S. Because of the way the credit card market is heading, with increased regulation and oversight, HSBC has decided that it needs to take the bank’s focus in a different direction.

“We need to change the shape of our business,” said Stuart Gulliver, CEO. “If we can’t find a buyer, we will put it into rundown.” Gulliver made the credit card announcement on the sidelines during the World Economic Forum taking place in Jakarta, Indonesia.

The Future

HSBC is targeting cost reduction of $3.5 billion to improve overall profitability. In the meantime, the bank also intends to increase its efficiency in the areas of capital and liquidity. Bank officials say that divesting the credit card operations will propel the bank toward its strategic plan for profitability. However, the size of the credit card portfolio is an obstacle to potential buyers. In fact, the credit card portfolio is so large that the word “gargantuan” is the term being thrown around.

Zacks.com named Barclays PLC and Capital One Financial Corp. as the two companies most likely to be interested in the credit card portfolio. However, Zacks maintains that it is unlikely that any one company could afford to acquire the entire portfolio owing to its size.

HSBC is also looking to save money by closing some of its least profitable retail bank locations. The bank has more than 460 locations in the U.S., of which 380 are in New York State.

The company hopes to expand its operations in the United Kingdom, Hong Kong and emerging markets.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

MasterCard and Fred Segal Open Shop on the Strip

Posted: April 20, 2018

MasterCard and Fred Segal have opened Rock ‘n Roll Holy Land on Sunset Strip, an immersive exhibit giving people an insider’s view of the history of the Sunset Strip. The shop also puts a unique digital spin on window shopping using ... Continue reading
New Amex Centurion Lounge Opening in Denver

Posted: April 19, 2018

Are you a regular at Denver International Airport (DEN)? If so, you may want to check out the new Centurion Lounge when it opens next year. It’s stated to be the eleventh lounge in the Centurion line up. Offering airfield views and taking ... Continue reading
Crate and Barrel and Synchrony Bank to Offer New Credit Cards

Posted: April 18, 2018

Do you shop for furniture and household wares at Crate and Barrel? If so, you might be interested to know that the home furnishings retailer has inked a deal with Synchrony to offer customers not only new credit cards and financing ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!