HSBC to offload French retail banking business to My Money Group
HSBC Continental Europe (formerly HSBC France) will divest its French retail banking business to Cerberus Capital Management-controlled My Money Group for a nominal price of €1, leading to a pre-tax loss of around €1.9 billion.
In this connection, the HSBC subsidiary has signed a memorandum of understanding (MOU) with Promontoria MMB SAS (My Money Group), its subsidiary Banque des Caraïbes, and My Money Bank (MMB) for the potential sale of the business.
My Money Group is a French banking group.
Eric Shehadeh – Chairman and CEO of My Money Group said: “This transaction represents a unique opportunity to accelerate our growth and develop a differentiating wealth management offer for our French clients.
“My Money Group, supported by funds managed by Cerberus Capital Management, will be able to provide HBCE’s French network with its knowledge of the French market, as well as its expertise in digital transformation. Together, we plan to perpetuate the heritage of CCF, as a benchmark in the retail banking market for high net worth clients in France.
Included in the potential sale are the French retail banking business, the Crédit Commercial de France (CCF) brand, and HBCE’s 3% stake in Crédit Logement, its 100% stake in HSBC SFH (France), along with the transfer of rights and obligations under the covered bonds program at closing.”
The French retail business of HSBC has a net asset value of around €1.6 billion.
My Money Group, through the deal, will be acquiring 244 retail branches that cater to nearly 800,000 customers, while adding €21.5 billion in customer loans and €18.9 billion in deposits along with some other assets and liabilities.
If the proposed deal moves ahead, then Banque des Caraïbes will operate the business under the CCF brand in mainland France.
It is expected that nearly 3,900 employees will transfer with the business following the transaction.
Noel Quinn – HSBC Group chief executive said: “The signing of an MOU for the potential sale of our French retail banking business represents a significant step in progressing the actions we announced during our strategic update earlier this year.
“It will enable us to dramatically simplify our business in Continental Europe and allow us to accelerate the transformation of our European wholesale banking franchise. We are committed to remaining as a leading international wholesale bank in Continental Europe, capitalising on our global network and serving our multinational customers both inbound and outbound.”