2023-06-14 17:52:49
HSBC Europe announces a “new memorandum of understanding” with My Money Group for the sale of retail banking activities.
Once weakened, the sale of HSBC’s retail banking activities in France to My Money Group was relaunched on Wednesday with the announcement by HSBC Europe of a “new memorandum of understanding” between the parties.
Seller and buyer “signed today (Wednesday) a new memorandum of understanding”, indicates a press release from the European entity of HSBC, with a view to carrying out the operation on January 1, 2024.
“We are very happy to have signed this protocol, all the teams are motivated to meet the January 1 deadline,” a spokeswoman for My Money Group told AFP.
This agreement specifies, without naming it, that the “indirect shareholder” of My Money Group, held by the American fund Cerberus, will bring “225 million euros of capital”.
In addition, the continental European subsidiary of HSBC undertakes to keep “a portfolio of 7 billion euros in loans”, especially real estate, out of a total of nearly 25 billion euros, which “was initially part of the sale “.
These two elements are supposed to enable My Money Group to meet the regulator’s capital requirements.
This financial point is crucial for the outcome of the operation. It is for this reason that the sale was deemed “less certain” on April 14 by HSBC Europe, a surprise then for the market and the unions.
In addition, the management of the credits kept on the balance sheet of HSBC will be “assured” by My Money Group, if the operation were to be finalized.
Return of the CCF
HSBC Europe also updates in its press release the financial impact of this operation. The note of the transaction is salty since the “cumulative loss before tax” can go up to 2.2 billion euros, most of which should be recognized in the second half.
The group had recorded a depreciation of $2.4 billion in this respect in the third quarter of 2022.
This sale would be the culmination of a long process for HSBC: a strategic review initially, followed by a memorandum of understanding announced in June 2021 and a first signature in November of the same year.
But the successive increases in interest rates, decided by central banks to counter inflation, have had the effect of upsetting the valuation of bank assets, and with them the equity of banking establishments.
Clearly, My Money Group was forced to strengthen its capital in order to be able to absorb HSBC France.
“We are happy to finally have visibility”, underlined to AFP Eric Poyet, union representative FO, “this proves the will of the parties to reach an agreement”.
That said, the deadline for finalizing the operation “seems short, which is a source of concern for employees and customers,” observed Bruno Ronsin, CFTC union representative.
HSBC’s retail banking activity in France includes approximately 250 points of sale and 3,900 employees, for some 800,000 customers.
The stated objective of the acquirer was to revive from its ashes the Crédit commercial de France (CCF) brand, a bank acquired twenty years ago by HSBC.
1686774246
#Sale #HSBCs #France #network #relaunched
