HSBC puts French retail branches up for sale
by Kay Murchie
HSBC is putting hundreds of its French regional retail branches up for sale.
Britain’s biggest bank is trying to find buyers for around half of its 800-strong French bank network, estimated to be worth around £2 billion.
It is believed that Goldman Sachs has been appointed to review options for the French network, acquired when it purchased Credit Commercial de France for £6 billion in April 2000 and renamed it HSBC France.
The move is a further indication that the bank is shifting its focus to emerging markets. Its November strategy review confirmed that its priority is to invest primarily in developing markets.
A sale of a large portion of its French retail banking network would stop speculation that the bank may bid for France’s Société Générale, which has been weakened by losses of €4.9 billion (£3.65 billion) as a result of a rogue trader scandal.
Analysts are forecasting 2007 pre-tax profits of approximately £12.3 billion - up from £11.34 billion in 2006. This time last year it shocked the market with the first profits warning in its 142-year history, blaming increasing problems with US mortgages. This problem escalated into the sub-prime mortgage collapse in the US which has now been a problem for many financial institutions worldwide.
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