HSBC Holdings PLC's management in France denied a media report suggesting that the British lender plans to unload its unprofitable retail banking arm in the country, Reuters reported, citing a union source.
The Wall Street Journal previously reported that HSBC was moving to sell HSBC France SA as part of longer-term efforts to unload businesses that lack scalability or strategic need.
Another union source told the news agency that HSBC's local management met with union representatives to discuss ways to return the unit to profitability, but a potential sale of the business was not considered. HSBC France is reportedly shutting down nine branches, and is said to have considered closing more.
Analysts at KBW estimate that HSBC France could be worth roughly between €1 billion and €1.5 billion, Reuters noted.
