London. HSBC is to restructure its Islamic finance business, reducing the amount of Shariah-compliant products and services it offers in various countries including Britain, Europe’s biggest bank said on Thursday.
“As a result of a strategic review of its Islamic finance business, the HSBC Group today announces that it will focus its Islamic finance offering on customers in Malaysia and Saudi Arabia, and maintain a limited presence in Indonesia,” the British bank said in a statement.
“The Group will cease to offer Shariah-compliant products and services in the UK, the UAE, Bahrain, Bangladesh, Singapore and Mauritius, with the exception of wholesale Islamic financing/sukuk [bond] products that will continue to be offered in these jurisdictions and globally through HSBC Saudi Arabia Limited.”
The bank said the move “represents further progress in HSBC’s execution of the global strategy set out in May 2011 and demonstrates the group’s commitment to driving growth and improving returns by restructuring or exiting businesses that do not meet its investment criteria.”
Following the restructure, HSBC will retain 83 percent of the group’s Islamic business revenues, the bank said.
Founded in Hong Kong and headquartered in London, HSBC sees Asia as its main market. It last year announced massive cost-cutting measures, including plans to save up to $3.5 billion by 2013 and to axe 30,000 jobs globally.