HSBC considering sale of Brazilian unit

HSBC has confirmed speculation that it is looking at a possible disposal of its Brazilian operations, though it has not yet made a decision.

In a short statement on Friday morning, the global banking giant said: "HSBC confirms that it is exploring various strategic options for its operations in Brazil, including the potential sale thereof."

HSBC Brazil, which is the seventh-biggest bank in the country with a 2.7% market share in terms of assets, reported a $306.8m loss in 2014 after a profit the year before.

Brazil contributed $4.82bn or 7.9% of the $61.25bn HSBC earned in net operating income in 2014, slightly down from $5.36bn (8.3%) of the $64.65bn generated in 2013.

"At present no decision has been made to proceed with any transaction and HSBC will make a further statement if or when appropriate," the bank said.

Earlier this week, the Brazilian unit of Banco Santander said it was studying a potential acquisition of HSBC's assets in the country.

“We can’t speak for HSBC Brazil, but there’s a very initial process for the sale of the bank [in Brazil] that we’re going to analyse," Banco Santander (Brasil) chief executive Jesús Zabalza said at a press conference on Tuesday.

However, he highlighted that no offer has been made.