HSBC Holdings Plc HSBC plans to begin a phased wind-down of its International Wealth and Premier Banking (Retail Banking) in Bangladesh starting in the second half of 2025, as part of its ongoing global business overhaul.
Rationale Behind HSBC’s Retail Exit in Bangladesh
The closure stems from HSBC’s strategic review of its retail banking businesses in four Asian markets, namely, Bangladesh, Australia, Indonesia and Sri Lanka. While the review continues for the latter three, the decision for Bangladesh has been finalized. HSBC will immediately cease onboarding new retail clients and will continue to support existing ones through the exit process. Its Corporate and Institutional Banking operations in Bangladesh remain unaffected.
HSBC's Bangladesh Exit Aligns With Simplification Effort
The move is part of HSBC Group’s simplification strategy outlined in October 2024, focusing on strengthening market leadership in areas where the bank has a competitive edge and growth potential. In line with its simplification strategy, HSBC is gradually exiting non-core operations across the United Kingdom, continental Europe and the United States. At the same time, the bank is sharpening its regional focus in Asia and the Middle East. The recent divestment activity includes Uruguay, Germany, South Africa, Bahrain and France.
In July 2025, HSBC also agreed to divest its life insurance subsidiary, HSBC Life (UK) Limited, to Chesnara for £260 million in cash. Subject to regulatory approvals, the deal is expected to close in early 2026. In the same month, HSBC Continental Europe entered into an agreement to sell its custody operations in Germany to BNP Paribas.
In March 2025, the company’s U.K. division, HSBC UK Bank plc, announced the sale of its U.K. private client trust business to Ludlow Trust.
HSBC is also progressing with divestments in South Africa and Bahrain. Apart from these, it has completed the sale of its businesses in the United States, Canada, New Zealand, Greece, Russia, Argentina and Armenia, as well as the retail banking operations in France and Mauritius.
Driven by these efforts, HSBC aims to deliver $1.5 billion in annualized savings by 2026. To implement the plan, the bank will likely incur nearly $1.8 billion in severance and other upfront charges by the end of next year. Additionally, the bank plans to redeploy approximately $1.5 billion of costs from non-strategic or low-returning activities into its core strategy, where it has competitive strength.
HSBC's Price Performance & Zack Rank
In the past year, shares of HSBC have rallied 51.8% on the NYSE, outperforming the industry’s growth of 40.2%.
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At present, HSBC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Moves by Other Finance Stocks
In July 2025, Capital One Financial Corporation COF announced plans to wind down the home equity lending unit that came under its portfolio after the acquisition of Discover Financial in May.
COF’s decision to exit Discover’s home equity and refinance loan business follows an extensive strategic review, signaling a focused approach to reshaping its portfolio post-acquisition. Although COF is shutting the originations pipeline, it will continue to service the existing portfolio and assess strategic options for sale and servicing.
In June 2025, Morgan Stanley MS announced its plan to shut its automated market-making business that specializes in electronic market-making for U.S. stock options.
The unit had been part of the MS efforts to execute options trades electronically and pay retail brokers for order flow. The company is winding down its options market-making operations, stepping back from a sector increasingly dominated by high-speed trading firms. The decision marks a strategic exit from a business where electronic execution and payment for order flow had been central.
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