HSBC has agreed to sell its entire Brazilian business to Brazil’s private sector lender Banco Bradesco in an all-cash deal worth $5.2bn.
The sale of the Brazilian operations forms part of HSBC’s strategy to optimise its global network and reduce complexity.
HSBC group chief executive Stuart Gulliver said: "We announced at our Investor Update on 9 June that we were targeting a series of actions to generate increased value for shareholders.
"I am pleased to be able to announce today a transaction which achieves both a solid financial outcome and swift delivery of one of our stated actions."
The deal is projected to contribute to the Investor Update action to reduce the company’s risk-weighted assets (RWAs), amounting to $37bn of the overall $290bn planned reduction.
The transaction, subject to regulatory approval, is expected to close by June 2016.