HSBC to rebrand UK retail banking arm – or possibly sell it

HSBC will rebrand its UK retail banking arm as part of a move to ring-fence it from the rest of the group. 

 

Chief executive Stuart Gulliver, who this morning revealed HSBC was cutting 25,000 jobs worldwide, of which 8,000 are expected to be UK jobs, said he was not certain he would keep the division longer-term. 

 

The move is in response to new rules in the UK requiring HSBC to separate the two arms by 2019. 

 

During a press conference following the announcement, Gulliver said a decision had not been made about whether to sell the bank. 

 

He added: “The question for us will be around our ability to control the dividend coming from the ring-fenced bank and to make sure that the strategy of the ring-fenced bank is complimentary to the strategy of the group.

 

"We will need to see how the PRA looks at the implementation of the legislation so it's far too early today to make any statements about whether we will keep the ring-fenced bank or not keep the ring-fenced bank."

 

He added: "We will operate with a different brand name. We haven't decided what that brand name will be and we're going to consult customers and our own staff over the next few months to decide what we might call this bank."