We’ve completed the sale of our Canada business to Royal Bank of Canada (RBC).

The sale follows a strategic review that looked at our relatively low market share in Canada and our ability to invest in HSBC Canada’s expansion and growth in the context of opportunities in other markets. The transaction unlocks significant value for the HSBC Group.

Noel Quinn, our Group Chief Executive, said: “I am grateful to the team in Canada for their hard work over the last 18 months delivering this transaction. This is a great business with exceptional people and clients, and I have no doubt it will thrive as part of RBC.

“Completing this deal is another important milestone in HSBC’s transformation, and it will provide capital that will enable us to grow our core businesses and reward our shareholders for their loyalty, including through an intended special dividend of US$0.21 per share.”

The deal also marks the departure of our Canada CEO Linda Seymour after a 35-year career with HSBC.

“My guiding light has always been putting our customers at the heart of everything I do. Part of what makes HSBC special is that so many of my colleagues feel exactly the same way,” she said.

“I have been fortunate to work with more amazing clients than I can count. They have taught me so much and being able to help them achieve their ambitions and goals has been so very satisfying.”

Completion of the transaction will result in the recognition of an estimated gain on sale of US$4.9bn in the first quarter of 2024.

As a consequence of the gain on sale, the disposal of HSBC Canada risk-weighted assets and the recognition of the special dividend, HSBC Group’s common equity tier 1 (CET1) capital ratio will be enhanced by an estimated 0.7 percentage points. Read more in our stock exchange announcement (PDF 132KB).