HSBC's British branches to be rebranded HSBC UK in 2018

According to Sky News, the FTSE 100 group announced the decision to thousands of its UK-based employees on Thursday, ahead of an official announcement.

The new name will be displayed across HSBC’s branches in the UK, putting an end to speculation that the bank might readopt the Midland name it ditched 16 years ago.

The lender communicated the decision to its employees around the world, indicating it had chosen to retain the HSBC name after surveying customers and staff.

“It soon became obvious that everyone preferred a name that maintains a strong connection to HSBC, and a clear commitment to the UK,” the memo said.

“That’s why we have decided to call the ring-fenced bank HSBC UK, with ‘UK’ distinguishing it from our non-ring-fenced banking operations.

“Our customers told us the HSBC brand represents strength and connectivity; they said our global network can help them realise both their domestic and international ambitions and that’s what differentiates us from other UK banks.”

The change of name will be introduced a year before new legislation requiring banks to segregate their retail operation, the so-called “ring-fencing”, will become effective.

In June, HSBC’s chairman Douglas Flint said the Midland name, which the lender ditched in the late 1990s, was “the odds-on favourite” to represent the group’s new “ring-fenced bank”, which will be based in Birmingham.

However, Europe’s biggest lender opted against reutilising the name.

"The Midland isn't a name that younger banking consumers recognise," a senior source said last week, according to Sky News.