HSBC (HSBA.L) has sold 195 branches in Upstate New York in a deal worth $1 billion (£608 million) to First Niagara Bank.

The FTSE 100-listed bank will hold on to its commercial banking operations in the region as part of its ongoing strategy to focus on commercial and corporate banking.

The deal is expected to complete early next year, subject to regulatory approvals.

At 31 May 2011, the branches held approximately $15 billion in deposits, $15 billion in gross assets, and $4.3 billion in assets under management.

Niall Booker, group managing director and chief executive fficer of HSBC North America, said the bank remained committed to the US market.

He added, 'We've been proud to serve the Upstate New York community for many years and look forward to continuing our engagement in the region through a strong commercial and corporate banking presence.

'I would like to take this opportunity to thank our branch employees and retail branch customers in the region for their loyalty over the years. Our priority is to make this transfer as seamless for them as possible.'

The banks is also to consolidate approximately 13 branches in Connecticut and New Jersey into nearby HSBC branches by the first quarter of next year.
 
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