Standard Chartered mulls HK consumer finance unit sale

Standard Chartered Plc is seeking buyers for a Hong Kong consumer finance business worth $500 million to $700 million, Reuters reported Wednesday, citing people familiar with the matter, as the Asia-focused lender sells off peripheral businesses.

A sale would come after the London-based bank in November said it aimed to use capital more effectively.

It said it would close or sell small units that are not in its biggest markets, do not work well with other operations or do not produce sufficient profit.

Standard Chartered, which recently reshuffled management after saying 10 years of earnings growth likely ended in 2013, is also considering the sale of its Swiss private bank.

Standard Chartered is working with an advisor to sell Hong Kong consumer finance business PrimeCredit Ltd, which the bank bought in 2004, said the people.

The bank is likely to kick off an auction to sell PrimeCredit in the next few weeks, they said.

A Standard Chartered Hong Kong-based spokeswoman, in an e-mailed response to a query on the matter from Reuters, said "We don't comment on market speculation."