Citizens Financial agrees to acquire 80 US branches from HSBC

Dan Reichl
Bloomberg
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Citizens Financial Group Inc., the Providence, Rhode Island-based regional lender, agreed to acquire 80 U.S. branches and an online-deposit business from HSBC Holdings Plc as it beefs up a banking network that extends from New England to U.S. mid-Atlantic and Midwest states.

Citizens said it will pick up about $9 billion in deposits and $2.2 billion in loans as part of the deal, according to a statement Wednesday. The price wasn’t disclosed.

The New York City metro-area market is home to 66 of the branches, Citizens said. The transaction also allows the lender to enter the Washington, D.C., and Southeast Florida markets. The companies expect the purchase to be completed in the first quarter of 2022.

Morgan Stanley was financial adviser and Debevoise & Plimpton was legal counsel to Citizens.

Citizens shares have surged 37% this year. They rose 1.5% to $49.09 in regular New York trading earlier Wednesday.

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