HSBC eager for acquisitions; Synchrony Financial, US credit card companies could be targets
HSBC [LON:HSBA] is seeking acquisitions, the new chairman of the UK-based lender has told investors, The Sunday Times reported. Mark Tucker assumed the role of chairman last month and outlined his plans in shareholder meetings, the report said. Shareholders are understood to be sceptical, the item reported.
City sources cited in the piece identified Synchrony Financial [NYSE:SYF], a Stamford, Connecticut-based credit card company, as a possible target for HSBC. Other acquisitions are believed to be under consideration too, the item reported.
An investor who recently met Tucker said HSBC believes credit cards to be one of only a few markets where the bank can expand, a second Times item reported.
A City banker cited in the initial article pointed out that US-based credit card companies are very lucrative and as a prime lender HSBC would be likely only to target businesses unconnected with sub-prime assets.
The original report appeared in The Sunday Times, Business & Money section, page 1