HSBC offloads US credit card division in $32.7bn deal

| August 10, 2011
”HSBC

Banking giant HSBC has today announced it has disposed of its US credit card division to Capital One Financial, as part of a global strategic cost-cutting exercise.

The announcement comes shortly after the bank said it would slash its underperforming US branch network by half and also announced it would axe 30,000 jobs globally in the next two years.

The sale of its credit card division, which is subject to approval by regulators, has assets of approximately $30.4 billion (£18.6 billion), while HSBC is expected to make a post-tax gain of around $2.4 billion.

In related news, Capital One purchased the US internet banking division of ING – the Dutch banking and insurance company – in June.

The deal represents one of the largest bank acquisitions in the US since the financial crisis and is subject to approval by US and Dutch regulators.

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