How Will HSBC (HSBC) Stock React To Asset Sale, Reduction of Countries Served?

NEW YORK (TheStreet) -- Shares of HSBC Holdings plc (HSBC) are down -0.46% to $51.41 in heavy trading volume this afternoon as the bank moves to reduce the number of countries its private bank serves by 50% after selling a portfolio of Swiss banking assets, the latest bank to narrow its wealth management focus in a bid to improve profitability and cut compliance risk, Reuters reports.

Most of the reduction will be via a deal agreed to today to sell $12.5 billion of its Swiss private banking assets to Liechtenstein bank, LGT Group Foundation.

Those assets were held by clients in dozens of countries, including in central and eastern Europe, and some countries in west Europe, Africa and in Latin America that HSBC sees as not strategically important, Reuters said.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

 
HSBC Chart

HSBC data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk