REG - HSBC Holdings PLC - Completion of the sale of HSBC Bank Canada to RBC

HSBC HoldingsAnnouncement

02/04/2024 07:00

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RNS Number : 8207I  HSBC Holdings PLC  29 March 2024

 

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29 March 2024

(Hong Kong Stock Code: 5)

 

HSBC HOLDINGS PLC

Completion of the sale of HSBC Bank Canada to RBC

 

HSBC Holdings plc ('HSBC') completed the sale of HSBC Bank Canada ('HSBC
Canada') and its subsidiaries to Royal Bank of Canada ('RBC') on 28 March
2024.

 

The sale followed a strategic review of HSBC Canada which concluded the best
course of action strategically for the HSBC Group and HSBC Canada was to sell
the business. The transaction unlocks significant value for the HSBC Group.

 

Commenting on the transaction, Noel Quinn, Group CEO said, "I am grateful to
the team in Canada for their hard work over the last 18 months delivering this
transaction. This is a great business with exceptional people and clients, and
I have no doubt it will thrive as part of RBC. Completing this deal is another
important milestone in HSBC's transformation, and it will provide capital that
will enable us to grow our core businesses and reward our shareholders for
their loyalty, including through an intended special dividend of US$0.21 per
share."

 

Completion of the transaction will result in the recognition of an estimated
gain on sale of US$4.9bn in the first quarter of 2024, inclusive of the
recycling of an estimated US$0.6bn in foreign currency translation reserve
losses(1). There is no tax on the estimated gain recognised at completion. As
a consequence of the gain on sale, the disposal of HSBC Canada RWAs and the
recognition of the special dividend, the HSBC Group's CET1 ratio will be
enhanced by an estimated 0.7 percentage points(2).

 

Subject to finalisation of its results for the first quarter of 2024 ('1Q24')
and consideration and approval by the Board, HSBC intends to announce a
special dividend of US$0.21 per share together with its 1Q24 earnings release
expected to be published on 30 April 2024. This would be in addition to any
proposed interim dividend to be considered by the Board and would be expected
to be paid at the same time in June 2024 if approved.

For and on behalf of

HSBC Holdings plc

 

 

Aileen Taylor

Group Company Secretary and Chief Governance Officer

 

 

1 Estimates are as at 22 March 2024, and exclude fair value gains or losses on
related foreign exchange hedges to be recognised in the quarter.

2 Based on HSBC Group RWAs of US$854bn and HSBC Canada RWAs on a PRA basis
(excluding operational risk RWAs) of US$28bn as at 31 December 2023. The
estimated CET1 ratio impact includes the impact of a US$0.21 per share special
dividend, and excludes impacts on foreign currency-related RWAs at the HSBC
Group level. The favourable CET1 impact arising from the disposal of HSBC
Canada RWAs, reduced by the impact of a foreseeable US$0.21 per share special
dividend will be recognised in the first quarter of 2024. The favourable
impact arising from the recognition of the gain on sale will be recognised
upon the verification of interim profits during the second quarter of 2024.

 

 

 

 

Miscellaneous

 

The Board of Directors of HSBC Holdings plc as at the date of this
announcement comprises:

Mark Edward Tucker*, Noel Paul Quinn, Geraldine Joyce Buckingham(†), Rachel
Duan(†), Georges Bahjat Elhedery, Dame Carolyn Julie Fairbairn(†), James
Anthony Forese(†), Ann Frances Godbehere(†), Steven Craig
Guggenheimer(†), Dr José Antonio Meade Kuribreña(†), Kalpana Jaisingh
Morparia(†), Eileen K Murray(†), Brendan Robert Nelson(†), David Thomas
Nish(†) and Swee Lian Teo(†).

 

*  Non-executive Group Chairman

(†)  Independent non-executive Director

 

 

This announcement contains both historical and forward-looking statements. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking statements may be identified
by the use of terms such as 'expects,' 'targets,' 'believes,' 'seeks,'
'estimates,' 'may,' 'intends,' 'plan,' 'will,' 'should,' 'potential,'
'reasonably possible', 'anticipates,' 'project', or 'continue', variation of
these words, the negative thereof or similar expressions or comparable
terminology. HSBC has based the forward-looking statements on current plans,
information, data, estimates, expectations and projections about, among other
things, results of operations, financial condition, prospects, strategies and
future events, and therefore undue reliance should not be placed on them.
These forward-looking statements are subject to risks, uncertainties and
assumptions about us, as described under 'Cautionary statement regarding
forward-looking statements' contained in the HSBC Holdings plc Annual Report
on Form 20-F for the year ended 31 December 2023, filed with the SEC on 22
February 2024 (the '2023 Form 20-F'). HSBC undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed herein
might not occur. Investors are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of their dates. No
representation or warranty is made as to the achievement or reasonableness of
and no reliance should be placed on such forward-looking statements.
Additional information, including information on factors which may affect the
HSBC Group's business, is contained in the 2023 Form 20-F.

 

ends/more

 

Investor enquiries to:

Neil Sankoff                         +44 (0) 20 7991
5072         investorrelations@hsbc.com
(mailto:investorrelations@hsbc.com)

Yafei Tian                             +852 2899 8909
          yafei.tian@hsbc.com.hk (mailto:yafei.tian@hsbc.com.hk)

 

Media enquiries to:

HSBC press office              +44 (0) 20 79918096
         pressoffice@hsbc.com (mailto:pressoffice@hsbc.com)

 

 

Note to editors:

HSBC Holdings plc, the parent company of the HSBC, is headquartered in London.
HSBC serves customers worldwide from offices in 62 countries and territories.
With assets of US$3,039bn at 31 December 2023, HSBC is one of the world's
largest banking and financial services organisations.

 

 

 

HSBC Holdings plc

Registered Office and Group Head Office:

8 Canada Square, London E14 5HQ, United Kingdom

Web: www.hsbc.com (http://www.hsbc.com/)

Incorporated in England with limited liability. Registered in England: number
617987

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