| (AFX UK Focus) 2007-11-25 16:07 GMT: HSBC considers 2 bln stg sale of French retail business - report
LONDON (Thomson Financial) - HSBC PLC is understood to be considering a sale of its French retail business as part of the bank's new plans to derive 60 pct of its earnings from emerging markets, according to the Sunday Telegraph. The newspaper did not name its source, but said the personal financial services and small business banking operations in France, estimated to be worth about 2 bln stg, are thought to be on the block. Analysts believe that HSBC's businesses in Malta, Canada, Australia and Bermuda and its regional banking operations in the US could also be put up for sale. The moves comes amid pressure from Knight Vinke, the activist investor that has accused HSBC of a lack of focus and criticised its pay structure. The newspaper said it is understood that the review of underperforming businesses was launched early this year, before Knight Vinke launched its high-profile campaign.
Wells Fargo remains largest small business lender in area
Wells Fargo loaned more than $42 million to small businesses in the Salem area, keeping it as the largest small business lender in the area, according to data collected under the Community Reinvestment Act. Wells Fargo extended 1,617 loans less than $100,000 to small businesses in Salem last year, the data showed. "CRA data is an important barometer for small business lending because it tracks loan originations, which represent the total amount extended to a business," said Aben Hill of Salem, Wells Fargo's Community Banking district manager for Salem. "Wells Fargo's 12 percent increase in lending in Salem affirms our ongoing commitment to small businesses." -- Don Currie .
UCBH Gets Approvals for China Bank Deal
UCBH Holdings Inc., the holding company for United Commercial Bank, said Monday it received regulatory approval for its planned $205 million cash purchase of Shanghai-based Business Development Bank Ltd., clearing the way for the deal to close in December. The move will expand the California banking chain's reach into mainland China. The purchase was first announced in May. United Commercial offers financial products and services to small- and medium-sized companies. The bank has branches in California, New York, New England, Atlanta, Houston, the Pacific Northwest and Hong Kong. .
Top bank groups' subprime hit limited
Profits at Japan's three major banking groups fell in the six months to September as they suffered losses linked to U.S. subprime mortgage loan woes, according to their business results, the last of which was announced Wednesday. Although the losses may seem small compared with the hit U.S. financial institutions have incurred, the subprime loan woes are steadily eroding the profits of Japanese banks. .
Hedging facilities fail to attract small, medium exporters in Cebu
AS the peso-dollar exchange remains volatile, many small and medium export companies have been discouraged from taking advantage of different hedging facilities offered by several banking institutions, an industry official said.
Former Cebu Furniture Industries Foundation (CFIF) president Michael Basubas said it is difficult for small and medium export companies to hedge as the foreign exchange market remains �very volatile.�
He said many exporters also do not have clear orders for the next few months from buyers.
Hedging is a strategy designed to minimize exposure to an unwanted business risk while still allowing the business to profit from an investment activity.
A currency hedging program refers to a side investment that is taken out specifically to reduce or cancel out the risk associated with exposure to certain currencies.
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