Europe’s largest bank HSBC is reportedly considering selling its car finance unit in a move that would allow the bank to raise more capital. It seems likely that any capital raised will be invested into emerging markets, following the bank’s strategy update offered in November. Last month, the bank’s group chairman Stephen Green revealed that HSBC is to focus on emerging markets, and the capital raised from any sale is likely to be reinvested into such markets.
Mr Green also revealed that a "tough minded attitude" is to be adopted by the bank with regards to capital allocation. It appears that such an attitude refers to a willingness to relinquish underperforming units, allowing the bank to reinvest in markets which they believe will offer a greater return.
Bank Considers Selling Car Finance Unit
Bank Considers Selling Car Finance Unit
Mon, 31 Dec 2007
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