HSBC considering sale of Canadian operations - report

HSBC is reportedly exploring a multibillion-pound sale of its operations in Canada in what would mark a significant retreat from its presence in North America.

According to Sky News, HSBC's board has instructed investment bankers at JP Morgan to sound out prospective buyers of its business in the country.

Sources told Sky that a sale would represent a substantial deal - both financially and symbolically - for HSBC.

Sky said one analyst suggested that the value of the Canadian subsidiary could be in the region of $7bn (£6bn).

The news comes as HSBC is confronted by a campaign orchestrated by the Chinese insurance group Ping An for it to embark on a wholesale break-up. Ping An, which owns more than 8% of HSBC, is thought to have told HSBC - led by chairman Mark Tucker and chief executive Noel Quinn - to split its lucrative Hong Kong business from the rest of its global empire, Sky said.

HSBC has already retrenched from parts of its business in the US, announcing last year that it would sell or wind down its mass-market retail operations there. It also sold its business in Brazil in 2016 for more than $5bn.

HSBC told Sky in a statement: "HSBC regularly reviews its businesses in all its markets.

"We are currently reviewing our strategic options with respect to our wholly owned subsidiary in Canada.

"Amongst the options being explored is a potential sale of HSBC Group's 100% equity stake in HSBC Bank Canada. HSBC Bank Canada is a very strong business and Canada's leading international bank.

"The review is at an early stage and no decisions have been made."

At 1050 BST, the shares were up 3.4% at 477p.