London-based bank HSBC will exit its Wealth and Personal Banking business in New Zealand via a wind-down, the bank announced today.

The wind-down is expected to happen over several years in a phased manner. The bank said it has stopped accepting new retail customers in New Zealand, with immediate effect.

“The decision has come after a strategic review of the business and reflects the rapidly evolving commercial, regulatory and technology environment for running a sustainable retail business,” HSBC said in a statement.

“Over the course of the planned exit, HSBC will continue to support its Wealth and Personal Banking customers to ensure a smooth transition to other service providers.”

HSBC, which has been operating in New Zealand for over 35 years, said it remained committed to the New Zealand market and will continue to operate and grow its Wholesale Banking business. This includes Commercial Banking and Financial Institutions & Government, along with its Markets & Securities Services business.

“Each of these businesses are primarily focused on supporting internationally-oriented clients that benefit from the HSBC Group’s unique global network and international financial capabilities,” it said.

Last year HSBC announced it had agreed to sell its banking business in Canada (HSBC Canada) to the Royal Bank of Canada in a US$10.1 billion deal. BNN Bloomberg reported last month the sale was taking longer than expected, however, and HSBC now expects to complete the transaction in the first quarter of 2024.

In 2021, the bank announced plans to exit its loss-making US domestic mass market retail banking business.