3 Acquisitions That Could Shake Up the Regional Banking Space
In recent months, the regional banking space has already experienced lots of change after several high-profile acquisitions. But there could still be lots more mergers and acquisitions (M&A) activity on the way, especially as the banking environment becomes more competitive and credit quality and earnings begin to stabilize. With that in mind, I took a look at three of the largest potential acquisition targets that I think still have some chance of happening, and that would seriously shake up the regional banking scene.
Media outlets reported recently that HSBC Holdings (NYSE: HSBC) is planning to wind down its U.S. banking operations through a sale or closure, and it's probably about time.
Everything about HSBC's U.S. banking franchise stinks, at least on paper. Its returns in recent years are dismal under every metric. Its net interest margin, the difference between what the bank makes on interest-earning assets such as loans and what it pays out on interest-bearing possibilities such as deposits, ended 2020 at 1.16%. Even in the ultra-low-rate environment in 2020, this is terrible. The bank's expense structure is also extremely bloated.
Source Fool.com
