HSBC expected to make announcement about future of Turkey unit soon

LONDON

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HSBC is expected to make an announcement about plans for its Turkey unit on Feb. 22, a source close to the matter has told Anadolu Agency. 

The bank, which had said earlier it would sell its Turkey unit, will reveal its plans about restructuring in the country, according to the source. 

“The decision may be to stay in the country or to reopen it to sale after a couple of years. What obvious is that the bank is not happy with the existing offers. HSBC announced 10 strategic action plans last year, and one of them was about the sale of the units in Brazil and Turkey. The bank sold its Brazil unit. An update will be made for Turkey now,” added the source, as quoted by Anadolu Agency. 

HSBC headquarters in London declined to comment about the matter. 

HSBC, Europe’s largest bank, has around 300 retail branches and corporate and investment banking operations in Turkey. The Turkish business lost $64 million in 2014 following a $155 million hit on its retail arm after regulatory changes capped interest rates on credit cards and overdrafts. Several reports have claimed that a number of banks are interested in buying the HSBC Turkish unit but none of them has yet been completed. 
HSBC has recently decided to keep its headquarters in Britain, rejecting the option of shifting its center of gravity back to main profit-generating hub Hong Kong after a 10-month review.