| Type | Subsidiary of HSBC Holdings plc |
|---|---|
| Industry | Finance and Insurance |
| Founded | 1981 |
| Headquarters | Vancouver, British Columbia, Canada |
| Key people |
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| Products | Financial Services |
| Employees | 6,000 |
| Parent | HSBC |
| Website | www.hsbc.ca |
HSBC Bank Canada, formerly the Hongkong Bank of Canada (French: Banque HSBC Canada), is a bank in Canada that is part of British banking giant HSBC - one of the largest banking groups in the world. HSBC Canada is the seventh largest bank in Canada, with offices in every province except Prince Edward Island, and is the largest foreign-owned bank in the country. Corporate headquarters are in the financial district of Vancouver, British Columbia. HSBC Bank Canada's Institution Number (or bank number) is 016.
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In 1979, The Hongkong and Shanghai Banking Corporation bought a Vancouver-based acceptance company that financed machinery and equipment for small companies operating in British Columbia. In 1981, The Hongkong and Shanghai Banking Corporation incorporated Hongkong Bank of Canada (HBC), in Vancouver as a chartered bank effective July 1, 1981 under the Bank Act of Canada. HBC used the acceptance company as a base for the new bank. HBC had a few retail branches primarily focused on Asian-Canadians, but the major portion of the bank's business was with commercial enterprises. HBC opened branches in major cities in western Canada and in Toronto and Montreal but growth was slow. HBC sought to grow by acquisition, but the first three attempts to buy an existing institution were unsuccessful. In 1986, on November 27, HBC acquired the assets of Bank of British Columbia, which had essentially failed. HBC gained $2.6 billion in assets and added 41 branches in British Columbia and Alberta. Overnight, HBC moved from the 20th largest to 9th largest bank in Canada.
In 1988, on May 20, HBC amalgamated with Midland Bank Canada, thereby increasing assets by $472 million, gaining many new corporate banking relationships, and expanding to Eastern Canada. In 1990, on May 29, HBC acquired Lloyds Bank of Canada, thereby increasing assets by $4.4 billion and adding 53 branches across Canada, mostly in Ontario and Quebec. HBC’s assets after this acquisition were $10.2 billion at October 31, 1990. This merger doubled its branch network, substantially increased HBC's exposure in eastern Canada, and made it a bilingual operation with branches in eight Quebec communities. HBC became the largest foreign bank. (Lloyds Bank had acquired Continental Bank of Canada 1986. This began in 1973 as Niagara Finance Company, became IAC Limited, and then Continental Bank.) In 1993, on April 30, HBC acquired ANZ Canada consisting of one office in Toronto, which it merged with its 70 York Street branch. This purchase made HBC the seventh largest bank in Canada with branches in every province except Prince Edward Island. (ANZ had acquired Grindlays Bank Canada with its acquisition of Grindlays, but management was more interested in expanding in the Asia-Pacific area.) In 1995, on August 1, HBC acquired Metropolitan Trust Company of Canada (1 branch).
In 1996, on August 31, HBC acquired Barclays Bank Canada. Barclays had re-entered Canada in 1979 and developed a diversified but modest range of activities. In 1985, it bought the assets of Wells Fargo Bank (Canada). Wells Fargo sold its operations in Alberta (and in Florida) to Barclays as part of a re-focusing on its home market. In 1993, Barclays Bank Canada closed its Edmonton branch. In 1994, Barclays closed six branches (Vancouver, Calgary, Winnipeg, London, Montreal and Halifax), retaining only its head office. Barclays' Canadian operations lost approximately $120-million between 1992 and 1996. HBC acquires the Seattle, Washington and Portland, Oregon branches of HSBC. The growing north-south trade occasioned by the adoption of the North American Free Trade Agreement (NAFTA) in 1994 made this move into the United States seem a natural expansion along with the business interests of many of the bank's customers. In 1998, on May 1, HBC acquired National Westminster Bank of Canada, which had assets of C$844.5 million. NatWest had entered Canada in 1982. In 1999, on June 21, HBC changed its name to HSBC Bank Canada, consistent with the HSBC Group's strategy of creating the global brand, HSBC. On December 3, it acquired Prenor Trust Company of Canada.
In 2000, HSBC Bank Canada acquired Republic National Bank of New York (Canada) after HSBC acquired the parent bank. (Republic had entered Canada in 1982, and had itself acquired several banks. First, in 1993, Republic acquired Bank Leumi Le Israel (Canada). The next year, Republic bought Israel-based Bank Hapoalim (Canada). Lastly, in 1996, Republic bought Israel Discount Bank of Canada's operations.) In 2001, on April 1, HSBC (Canada) acquired CCF Canada after HSBC acquired CCF Canada's parent company, CCF. CCF had just acquired Crédit Lyonnais Canada. Credit Commercial de France (Canada) had entered Canada in 1982 when it established an office in Montreal. Société Genérale (Canada) acquired it in 1990. CCF had returned to Canada in 2000. In 2002, HSBC Holdings merged its Canadian and US operations to create a North American transnational bank. HSBC Bank USA of New York, with assets of US$87 billion, and HSBC Canada, with assets of C$34 billion, share some operating resources but remain separate units. In 2004, HSBC Bank Canada acquired Intesa Bank's Canadian unit, which had 11 branches and total assets of C$1.1 billion when the two banks completed the transaction on June 1, 2004.
On September 20, 2011, HSBC Canada sold its full-service brokerage division, HSBC Securities (Canada) inc., to National Bank Financial Group for C$208 million.
Operating divisions of HSBC:
HSBC Canada is a member of the Canadian Bankers Association (CBA) and registered member with the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks. It is also a member of:
Effective March 15, 2010, BMO Bank of Montreal ceased accepting deposits at its ATMs from HSBC customers and resumed charging a convenience fee after five years of an ATM sharing agreement with HSBC Bank Canada. HSBC continues as a member of The Exchange Network. This was a decision HSBC took as part of a restructuring of its personal banking strategy. Instead, HSBC will rebate the convenience fee charged to its HSBC Premier qualified customers to a maximum of $1.50 per instance for using any ATM in Canada.
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