HomeMost PopularInvestingHSBC Completes Transfer of Russia Unit Ownership to Expobank

HSBC Completes Transfer of Russia Unit Ownership to Expobank

Actionable Trade Ideas

always free

After almost two years of negotiations, HSBC Holdings plc HSBC has finally completed the sale of its Russia Unit to Expobank. The lender confirmed that it transferred the ownership of its Russia unit, HSBC Bank (RR) LLC, to Expobank for an undisclosed fee.

HSBC stated, β€œEconomic ownership of HSBC Russia has been transferred to Expobank. The transaction will formally complete once the legal title transfer has been registered in the State Corporate Register.”

HSBC first announced its intention to sell 100% of its stake in the Russia unit to Expobank in June 2022.

Post the Russia-Ukraine conflict, many of the world’s top financial companies began either selling or reducing their businesses in Russia because Western sanctions made operating there increasingly difficult.

Since then, Moscow steadily tightened restrictions on foreign asset sales because of which, banks require the president’s approval for any deal.

This February, HSBC got the approval from Russia’s president Vladimir Putin to sell its Russia unit to Expobank.

In 2011, HSBC exited the retail banking business in Russia, post which, it only served corporate clients in the region.

By June 2021-end, HSBC’s Russia business was worth 89.9 billion rubles and employed nearly 250 people.

In 2023, HSBC said that it took a $300-million loss on the expected sale of its Russia business.

Since announcing its exit from Russia, HSBC has managed down the size of the already small unit.

Over the past six months, HSBC shares have gained 13.1% on the NYSE compared with the industry’s growth of 12.7%.

Β 

Zacks Investment Research
Image Source: Zacks Investment Research

Β 

Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Firms Exiting Russia

In April 2022, French bank, Societe Generale SCGLY said that it was ceasing its banking and insurance activities in Russia. SCGLY also announced the signing of a sale and purchase agreement to sell its entire stake in Rosbank and the group’s Russia insurance subsidiaries to Interros Capital, the previous shareholder of Rosbank.

Then, in December 2023, it was noted that SCGLY could complete its exit from Russia by selling stakes in some of the country’s largest companies back to Rosbank. President Putin had approved an order to allow Rosbank to once again buy the Russian stakes from SCGLY.

Likewise, Citigroup C has ended most of its institutional banking services in Russia. In April 2021, the company announced plans to sell its global consumer business in Russia and 12 other markets. Later, it broadened the scope of the planned exit to fold up other lines of business in the country. In 2022, Citigroup was negotiating with local buyers and privately owned Russian companies for the sale of its operations in Russia.

Research Chief Names β€œSingle Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Citigroup Inc. (C) : Free Stock Analysis Report

Societe Generale Group (SCGLY) : Free Stock Analysis Report

HSBC Holdings plc (HSBC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.