HSBC taps JP Morgan for potential Canada exit -source

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TORONTO  (Reuters) – HSBC is working with JPMorgan Chase & Co as the UK lender reviews its Canada business for a potential sale, a source familiar with the matter told Reuters on Tuesday.

Earlier, HSBC said it is considering selling its business in Canada, worth billions of dollars, as it looks to beef up returns as demanded by its largest shareholder.

JPMorgan and HSBC declined to comment.

HSBC in May last year announced it would exit mass-market banking in the United States, and in June said it would sell its French retail business as part of a plan to improve profits and fend off calls from top shareholder China’s Ping An Insurance Group to split off its Asian business.

If HSBC’s review in Canada were to result in the 100% sale of its unit there, that would mark a more complete exit from the country than those other divestments.

HSBC Bank Canada includes four divisions covering HSBC’s commercial banking, personal banking, investment banking and markets services business in the country.

The bank is the country’s seventh largest by assets, according to Refinitiv data, and the biggest international player in a market dominated by domestic incumbents.

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