Friday, October 7, 2022
HomeWealth ManagementBig Six banks might snap up HSBC's Canadian unit

Big Six banks might snap up HSBC’s Canadian unit


Read more: HSBC Bank Canada names new chief financial officer

The Canadian unit has been the third-largest contributor to commercial banking profits globally, despite being a small portion of HSBC’s overall business. According to Bloomberg News, the unit could be worth up to US$10 billion.

Analysts described the potential sale as a “rare opportunity” to buy a sizable Canadian lending institution. National Bank of Canada analyst Gabriel Dechaine noted that he anticipates every major bank to at least explore the possibility, though not all may be in a capital position to do so.

“Hard to see [the Bank of Montreal] and [Toronto-Dominion Bank] making a serious run, considering they are hoping to close large U.S. acquisitions later this year,” Dechaine said.

“[Royal Bank of Canada] seems the most obvious given its large excess capital position, and the potential size of HSBC Canada relative to its market capitalization is far from a ‘bet the farm’ situation.”

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments