HSBC received super profits from Russian Business
2023.02.21 02:30
HSBC received super profits from Russian Business
By Kristina Sobol
Budrigannews.com – In the most significant update on the progress of the deal since it stated in July 2022 that it had agreed to sell the unit to local lender Expobank, HSBC HSBA.L> stated that it still expects to complete the sale of its Russia business in the first half of 2023. This is the most significant update.
HSBC announced in its 2022 annual results that Europe’s largest bank has lost $300 million on the anticipated sale of the company.
Shortly before Deputy Finance Minister Alexei Moiseev stated that Russia would block the sale of foreign banks’ Russian businesses, HSBC stated in July of last year that the deal was pending approval from the Russian government and regulators.
The lender with its headquarters in London reiterated on Tuesday that the transaction is still awaiting regulatory approval, but it did not provide any further information regarding the state of that process.
After Russia invaded Ukraine in February of last year, many multinational corporations left quickly. However, banks have taken longer to leave because of concerns about what Russian law will allow. “A special operation” is what Moscow refers to its action in Ukraine.
A Moscow court in July prohibited Credit Suisse from selling shares in its Russian unit and ordered the Swiss bank to forfeit 10 million euros ($10.7 million).
A corporate banking division of HSBC operated in Russia, providing domestic and international customers with a variety of lending and investment banking services.
On the eve of Russia’s invasion, HSBC Chief Financial Officer Ewen Stevenson stated that it employed approximately 200 individuals.
