The British HSBC $HSBA (-0,32 %) is disbanding a division that caters to small and medium-sized businesses in the US. This is part of a broader strategy to focus on markets where the company has an advantage, a company spokeswoman said.
But perhaps also a tactically wise move, as bankruptcies of small to medium-sized companies in the US have risen to a historic level since Trump took office.
This week, for example, 40 employees in the "Business Banking" department were made redundant.
HSBC has also informed the approximately 4,400 customers of the Business Bank about this decision; these are companies with a turnover of up to 50 million dollars.
"We are ... supporting customers to transition to a suitable alternative provider," the spokeswoman said. The bank will retain the customers served by other teams.
Most of the clients the bank is losing as a result are American companies and not US subsidiaries of international companies.
The withdrawal from business with smaller clients follows a retreat on Wall Street.
Earlier this year, HSBC announced it would stop advising companies on deals and IPOs in the US and Europe. The bank, which is listed on the London stock exchange, is prioritizing its home markets of Hong Kong and the UK and is increasingly focusing on Asia.
HSBC already largely gave up its private client business in the USA in 2021, when the bank sold parts of this business to Citizens Bank and Cathay Bank. The following year, it agreed to sell its Canadian business to the Royal Bank of Canada.