HSBC to sell $2.7-bn Japanese private banking unit to Credit Suisse

HSBC Holdings is exiting the private banking business in Japan by selling its Japanese private banking business to Credit Suisse Group AG.

The business is worth $2.7 billion as of end-October, but the London-based lender did not give the sale price. The business had wealthy individuals as customers, who hold more than 200 million ($2.6 million) in assets.

HSBC, Europe's largest bank, said that the sale represents further progress in the execution of its strategy outlined at the investor day in May 2011.

But the lender will retain the high net worth HSBC Premier, the private banking service that covers clients who hold more than 10 million yen in assets.

As the world's third largest economy, with significant trade flows with the rest of the world, Japan continues to be an important market for the bank, HSBC said in a statement.

Credit Suisse said its private banking business in the Asia-Pacific region has been among the fastest-growing of its international wealth management businesses, with annual double-digit growth in net new assets.