Standard Chartered looking to sell Hong Kong lender PrimeCredit

Standard Chartered is seeking buyers for Hong Kong consumer finance business PrimeCredit, according to people familiar with the matter, as the Asia-focused bank sells peripheral businesses.

The move comes after the London-based bank said in November that it aimed to use capital more effectively. It said it would close or sell small units that were not in its biggest markets, did not work well with other operations or did not produce sufficient profit.

The bank, which recently reshuffled management after saying 10 years of earnings growth likely ended last year, is also considering the sale of its Swiss private bank, it was reported last week.

Standard Chartered is working with an adviser to sell PrimeCredit, which the bank bought in 2004, said the sources.

The bank is likely to kick off an auction to sell PrimeCredit for between US$500 million and US$700 million in the next few weeks, they said.

A spokeswoman for Standard Chartered said: "We don't comment on market speculation."