HSBC has completed the sale of its retail banking operations in France to My Money Group, which changed its name to CCF Group after the transaction.
That marks a return to the CCF brand, or Credit Commercial de France. CCF's roots date back to 1894 in France and it took the name CCF in 1917, growing to be one of the biggest banks in the country. HSBC bought the business in 2000 and rebranded it under the HSBC name from 2005.
HSBC said in October it expected to take a loss on the sale of up to US$2.2bn.
The London-based bank agreed in 2021 to sell the business to My Money Group, which had been owned by US private equity firm Cerberus Capital Management since 2018. But the deal ran into difficulties last year after the rise in interest rates increased the amount of capital the buyer required, which forced the two sides to renegotiate terms.
The business had about 244 retail branches and about 800,000 customers, €21.5bn in customer loans and €18.9bn in deposits. When the deal was first agreed, about 3,900 employees were expected to transfer over.
CCF said on Monday it aims to offer retail banking and wealth management services in France. It also offers auto financing, personal loans, debt consolidation and savings products. CCF said it now has total assets of more than €30bn and a Common Equity Tier 1 capital ratio of more than 15%, and "a substantial liquidity position of around €10bn in cash".
The deal completes a difficult exit for HSBC but it is a key part of CEO Noel Quinn's plan to simplify the bank, cut costs, exit underperforming areas and allocate more resources to Asia – all part of his effort to lift returns.
"This represents an important milestone in our strategic vision for Europe," Quinn said in a statement. "Our team in Europe will continue with the aim of becoming the leading international wholesale bank in Europe, complemented by a targeted wealth and private banking business.”
HSBC expects to complete the sale of its bank in Canada to Royal Bank of Canada by the end of March, which is likely to result in a gain of US$5.5bn. It has also sold most of its retail banking in the US and sold smaller businesses elsewhere.