HSBC Financial Corp. Ltd. is winding down its consumer finance business, the subsidiary of HSBC Bank Canada said Wednesday.
HSBC says the consumer finance business no longer supports its core businesses and growth strategy in Canada.
HSBC Financial is the legacy business of Household International acquired by HSBC in 2003 and already wound down in the United States and the United Kingdom. In Canada it has operated under the separate brand of HSBC Finance on a stand-alone basis from HSBC Bank Canada branches.
“This move, while not taken lightly, will allow HSBC to better focus our resources on the core businesses that matter most to our Canadian banking customers,” said Lindsay Gordon, chairman, HSBC Financial, and president and CEO, HSBC Bank Canada, in a release.
He added that HSBC tried to sell the business, but “a suitable buyer could not be found.”
“The decision will have no impact on HSBC’s banking operations in Canada,” said.
HSBC Financial consumer finance offices will cease taking loan applications and will be closed as soon as practical, says HSBC. Initially, approximately 500 employees at 75 offices across Canada will be impacted.
The business will continue to service and collect its existing receivable loans and to provide customers with call centre support.
There will be no impact on the medium-term notes of HSBC Financial Corp. Ltd. which will be paid on their scheduled maturity in May 2012.