HSBC Holdings Plc reached an agreement for the sale of its two portfolios of U.S. consumer loans for $3.2 billion in cash as part of its move to decrease operations in the country.
The HSBC Financial Corp. division has decided to sell its portfolios of personal unsecured loan and personal homeowner loans to Newcastle Investment Corp. and Springleaf, HSBC said.
The deals mark the accelerated run-down of the lending company's consumer lending business in the U.S. where it also held its unsecured personal loans worth $3.7 billion on sale in November last year, division's chief executive Patrick Burke said in a statement.
HSBC started running down the books as it reported billion dollar losses following the United State's housing market crash.
Recently, the bank saw a decline in its annual profits following a money laundering costs and compensation fees that were paid to the customers.
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