Wall Street lukewarm on HSBC’s U.S. retail exit


LONDON — HSBC on Wednesday announced it would exit its money-losing U.S. retail banking operations, a move that is being met with tepid applause by Wall Street analysts.

Europe’s largest bank in terms of assets will sell off some parts of its mass-market business and wind down others as it looks to shift attention to its largest market — Asia.

In a note Thursday, Goldman Sachs banking analysts reiterated that HSBC’s lack of scale in U.S. retail banking was the main reason for its low profitability and high cost-to-income ratio stateside.

“Thus, we see the announced measures as a positive, as they represent a small step towards HSBC potentially becoming a more focused, simpler and more…


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