Business
Completion of the sale of HSBC Bank Canada to RBC
Completion of the sale of HSBC Bank Canada to RBC.
About this update from Hsbc Holdings Plc
[{"type":"text","content":"\n\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\n \nHong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.\n \n \n \n29 March 2024\n(Hong Kong Stock Code: 5)\n \nHSBC HOLDINGS PLC\nCompletion of the sale of HSBC Bank Canada to RBC\n \nHSBC Holdings plc ('HSBC') completed the sale of HSBC Bank Canada ('HSBC Canada') and its subsidiaries to Royal Bank of Canada ('RBC') on 28 March 2024.\n \nThe sale followed a strategic review of HSBC Canada which concluded the best course of action strategically for the HSBC Group and HSBC Canada was to sell the business. The transaction unlocks significant value for the HSBC Group.\n \nCommenting on the transaction, Noel Quinn, Group CEO said, \"I am grateful to the team in Canada for their hard work over the last 18 months delivering this transaction. This is a great business with exceptional people and clients, and I have no doubt it will thrive as part of RBC. Completing this deal is another important milestone in HSBC's transformation, and it will provide capital that will enable us to grow our core businesses and reward our shareholders for their loyalty, including through an intended special dividend of US$0.21 per share.\"\n \nCompletion of the transaction will result in the recognition of an estimated gain on sale of US$4.9bn in the first quarter of 2024, inclusive of the recycling of an estimated US$0.6bn in foreign currency translation reserve losses1. There is no tax on the estimated gain recognised at completion. As a consequence of the gain on sale, the disposal of HSBC Canada RWAs and the recognition of the special dividend, the HSBC Group's CET1 ratio will be enhanced by an estimated 0.7 percentage points2.\n \nSubject to finalisation of its results for the first quarter of 2024 ('1Q24') and consideration and approval by the Board, HSBC intend...