HSBC concludes sale of Brazil operations
HSBC has completed the sale of its Brazil business to Brazilian lender Banco Bradesco after securing all necessary regulatory approvals.
The bank said that the sale is part of its strategy to optimise its global network and reduce complexity.
The $5.2bn all-cash deal was announced in August 2015, and expected to reduce the group’s risk-weighted assets by about $37bn and increase its common equity tier 1 ratio by 65bps.
The bank has however, retained a presence in Brazil to cater to large corporate clients.
HSBC Brazil consists of HSBC Bank Brasil – Banco Multiplo and HSBC Servicos e Participacoes. It has retail banking, commercial banking, global banking and markets, as well as private banking units. As at 31 March 2016, the unit managed total assets of $45bn and total equity of $3bn.
Banco Bradesco provides retail, corporate and investment banking services, as well as also operates the largest insurance business in Brazil. The bank has 25.6 million account holders, 91,000 employees and 4,509 branches, and manages total assets of about $309bn and total equity of nearly $26bn as at 31 March 2016.