21st Jul 2025 04:33
(Alliance News) - HSBC Holdings PLC on Friday said it has agreed to sell its portfolio of French home and "certain other" retail loans to a consortium comprising Rothesay Life PLC and CCF Group.
HSBC, a London-based universal bank and FTSE 100 constituent, signed a memorandum of understanding through its HSBC Continental Europe subsidiary with Rothesay Life, the UK's largest pensions insurance specialist, and French banking group CCF.
In the first quarter of 2025, HSBC recognised a EUR1.2 billion pretax fair value loss through other comprehensive income on the portfolio, and a EUR100 million fair value gain in the income statement on related interest rate hedge charges. This fair value loss on the portfolio resulted in an approximately 0.2 percentage point reduction in HSBC's common equity tier one ratio, which stood at 14.7% on March 31.
If completed in the fourth quarter as expected, HSBC said the transaction will recycle the loss recognised in other comprehensive income to the income statement with no further impact on the CET1 ratio.
"The potential transaction allows HSBC Continental Europe to further strengthen its focus on being the leading corporate and institutional bank in Europe, supporting international clients. HSBC is focused on increasing its leadership and market share in the areas where it has a clear competitive advantage, and where it has the greatest opportunities to grow and support its clients," HSBC said.
HSBC shares closed down 0.3% at 930.20 pence in London on Friday and 0.7% lower at USD62.82 in New York, before rising 0.6% after hours.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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