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HSBC Holdings PLC said Tuesday that it is considering offloading its Canadian business.
HSBC shares were 4.3% higher at 481.00 pence each on Tuesday afternoon in London.
The Asia-focused lender noted that it ‘regularly reviews its businesses in all its markets’ but, in particular, is keeping a close eye on its Canada unit.
‘Amongst the options being explored is a potential sale of HSBC Group's 100% equity stake in HSBC Bank Canada,’ the bank said. ‘HSBC Bank Canada is a very strong business and Canada's leading international bank. The review is at an early stage and no decisions have been made.’
The division is worth around $9.0 billion, according to the Financial Times.
The bank has recently moved away from its retail operations in the US and France towards further Asian focus.
HSBC has also previously come under pressure from its largest shareholder, Ping An Insurance, to spin off its Asia operations despite pushback from executives.
The restructuring bid highlights HSBC's precarious position as US-China tensions rise, with some observers doubting whether Europe's largest lender can continue to straddle east and west.
Chinese insurer Ping An believes it is in need of urgent and radical change, and has not been swayed by arguments against the move presented by the bank's leaders.
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